MODERN MANAGEMENT 
APPLIED TO CONSTRUCTION 



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MODEEN MANAGEMENT 

APPLIED TO 

CONSTEUCTION 



BY 

DANIEL J. HAUER 

CONSTRUCTION ECONOMIST; CONSULTING ENGINEER. 



First Edition 
Second Impression 



McGRAW-HILL BOOK COMPANY, Inc. 
239 WEST 39TH STREET. NEW YORK 



LONDON: HILL PUBLISHING CO., Ltd. 

6 & 8 BOUVERIE ST.. E. C. 
1918 



Copyright, 1918, by 
Daniel J. Hauer 



FEB 18 192a 



) 






THE MAPLE PKESS YOKK TA 



"/n American business life there has arisen almost a hue-and-cry for 
methods of higher efficiency." — Benjamin A. Franklin. 



THIS VOLUME IS INSCRIBED BY 
THE AUTHOR 

TO ONE WHO, SCHOOLED ONLY IN THE WORLD OF EXPERIENCE, 

HAS, BY HIS INBORN ABILITY AND CLOSE STUDY OF 

MEN, PLACED HIMSELF AMONG THE 

LEADERS OF HIS PROFESSION! 

TO John J. Hagerty 
Contractor, of New York City 



PREFACE 

Andrew Carnegie is credited with saying that if he had 
to lose his plants or his organization, he would prefer to 
lose the former; for they could be replaced more quickly 
than his organization. 

This is especially true of contracting. The building 
of an organization for this work means years of effort. 
Contractors just starting in the business quickly realize 
this; the older men in the field know that hundred per cent 
efficiency in any contracting organization is seldom reached. 

The principles of modern management should leave 
nothing for chance to decide. Therefore, the successful 
contractor of today must break away from old inefficient 
methods and practise modern ways. To do this calls for 
real leadership. 

In mechanical lines much has been done to try out 
this new leadership — to adopt scientific management 
and establish new standards for a greater efficiency in 
manufacturing. 

It has been thought that these principles, so successfully 
applied in the manufacturing field, are not applicable to 
engineering and architectural construction. This idea, 
however, has been proven erroneous by the successful 
work of those pioneers in the contracting field. 

The author's experience as a construction economist 
covering the past decade has taught him that scientific 
management is applicable to construction — he has applied 
and is applying the principles of such management with 
a fair degree of success. 

This treatise is the result of the author's experience. It 
is offered to the profession with the hope that engineers 
and contractors can build up and strengthen their organi- 
zations for greater efficiency, making possible the earning 
of larger profits. 

Daniel J. Hauer. 

April, 1918. 



CONTENTS 

Pag^ 
Preface v 

CHAPTER I 

What is .Scientific Management? • . . . . 1 

Scientific Management? — What is it? — What does it Mean? 
— Scientific Management a Necessity — Books and Experts — Two 
Methods of Applying Scientific Management — My Work is 
Different. 

CHAPTER II 

Old Versus New Management 9 

Running a Job from Day to Day — New Difficulties — A Foreman 
Saves Money — How Money was Wasted — Modern Management 
Cares for Details. 

CHAPTER III 

Principles of Modern Management 17 

Planning Construction Jobs — The Highest Test of Management — 
Planning General Methods — Designing and Engineering — Routing 
Work — Instructions for Workmen — Basis for Rewarding Workmen. 

CHAPTER IV 

Finances and Efficiency 26 

Modern Management and Finances — Capital must be Considered 
— An Exhausted Bank Account — Efficiency must be Applied — 
Were the Old Days the Best? — Efficiency within the Organization 
— EflBciency from without the Organization — Efficiency Will. 

CHAPTER V 

Fundamentals in Choosing Type and Amount of Plant 37 

The Economic Plant — ^Lack of Plant — Using Makeshift Machinery 
— Hand Methods — Excessive Plant — Overhead Charges — Plant 
Knowledge — Cost Records and Their Availability — Special 
Machines. 



X CONTENTS 

CHAPTER VI 

Page 

The Application of Motion and Time Studies 57 

Motion Studies — Time Studies — Motion and Time Studies Applied 
to Shovel Work — Long-handled Shovels — The Shapes of Shovels — 
Height of Shoveling — Shovel Shapes for Various Materials — Size 
of Shovels — The Motions of Shoveling — The Limits of Shoveling 
— How Shovels are Manufactured — Dimensions of Shovels — How 
Shovels are Sold — The Abuse of Shovels. 

CHAPTER VII 

Application OF Modern Management 94 

Planning General Methods — General Plans — Plant Selections — 
Time Schedule — Estimates of Cost — Designing and Engineering — 
Making Charts and Plans — Designing Plant Layouts — Designing 
Rigging and Structures — Quantities of Work and Material Lists — 
Sequence of Work — Distribution of Work — Number of Size of 
Gangs — Instruction for Mechanics — Instructions for Common 
Laborers — The Basis for Rewarding Workmen — Further Incentive 
to Workmen. 

CHAPTER VIII 

Cost Keeping and Book-keeping 117 

Cost Keeping — Cost Forms — Separate Blanks for Each Class of 
Work — Who should Keep Costs? — Material Reports and Stock 
Books — Cost Records should be Kept in Detail — Signing Reports 
— A Complete Cost Keeping System — Establishing Tasks and 
Bonuses — Book-keeping. 

CHAPTER IX 

Systematizing Construction 131 

Books of Rules — System on Contracting — Departments in Con- 
tracting — Amount of Work to Do — Construction Easily Susceptible 
to System — Construction Difficult to Handle — Records of Tools 
and Machinery — Purchasing Materials and Machinery. 

CHAPTER X 

The Effect of Modern Management Upon Workmen 170 

Old Management and Workmen — Study of Men — Espirit De 
Corps — Institutional Management — Scientific Management and 
Workmen. 

Appendix 180 

Index 189 



MODERN MANAGEMENT 
APPLIED TO CONSTRUCTION 

CHAPTER I 

WHAT IS SCIENTIFIC MANAGEMENT? 

Scientific Management? What is it? What does it 

Mean? 

It is an attempt to gain greater efficiency from men and 
machines and is expressed by one authority as requiring 
high ideals, common sense, competent counsel, discipline, 
a square deal, reliability, planning, scheduling of opera- 
tions, standardizing conditions and operations, and a sys- 
tem of awards, in order to reach the highest point. 

Another writer places the following as essentials to scien- 
tific management: records of details, standardized condi- 
tions, standardized quality to find out what is to be done 
and how to do it, written instructions as to the standard 
method of reaching the required time or cost, and constant 
comparison of actual performance with the standards to 
see that the actual reaches the standard and continues to 
do so. 

A third writer states that ^'scientific management pre- 
scribes the destruction of tradition. Scientific management 
calls for the rapid alternation of viewpoints from perspec- 
tive to close scrutiny, from idealism to practicality, from 
preparation to execution. Men are wont to deprecate the 
hne of conduct known as cut-and-try ; but scientific manage- 
ment is exactly that course. It is the cutting of one's 
material according to a plan, and the tentative assembhng 

1 



2 MANAGEMENT APPLIED TO CONSTRUCTION 

of the pieces. It is the disruption of vogued practice and 
the reconstruction of methods. 

'^One may, if he chooses, use the results of another's 
experimentation as a basis for his own cutting and trying; 
but unless he goes further, and applies the cut-and-try 
expedient to his new-found knowledge, he becomes, not a 
scientific manager, but merely an imitator. A man suc- 
ceeds in the process directly in proportion to his understand- 
ing of his problem. There are all sorts of cutters and tryers, 
varying from men whose intuitions have all the earmarks of 
inspiration, down to those who cut their eye teeth in trying 
to learn scientific management out of a book. Scientific 
management involves much more than the formulation of 
standards. It comprehends the repudiation of standards. 
It demands the setting aside of preconceived notions and 
fixed ideas regarding business. It exacts the ever-readiness 
to abandon even the results of its own activity.'' 

These are the broad general principles applicable to every 
line of business. For construction work the application is 
given by one authority in the following words : 

^' The aim of scientific management is to find the best and 
cheapest way to accomplish a piece of work and provide 
means for doing it in this fashion." 

Scientific management or efficiency engineering is a 
broad subject. It includes the culling out of obsolete busi- 
ness ideas, the substitution of contract work for day labor, 
the paying of bonuses, the discarding of unprofitable 
parts of a business, the elimination of waste of both mate- 
rial and labor, the selection of plant and machines, the 
arrangement of plant and men, the operation of machines, 
the handling of tools and a hundred other details. 

The work of the past has been mostly in the mechanical 
branch of engineering or commercial manufacturing. The 
work of the future will be in the field and under conditions 
that are seemingly against the efficiency engineer. This 
includes the engineering-contracting field — the work of 
rearing engineering structures — where the same man does 
not perform the same work twice; where the operations are 



WHAT IS SCIENTIFIC MANAGEMENT 3 

conducted at widely scattered places; where the workmen 
are incompetent and the plant is inadequate, the designing 
department poor or nil, and possibly the bank account has 
been exhausted. 

Scientific Management a Necessity 

Scientific management is not a fad; it is a necessity. 
It has been a great success in manufacturing and in the 
trades for selling. It is now being applied successfully to 
construction. 

We are interested only in the work that has been done in 
other lines so far as we can learn lessons from them that 
can be applied to the contracting field. Those contractors 
who are among the first to apply scientific management to 
their work will reap the greatest rewards. Not only by 
reducing the cost of their work will they increase their 
profits, but by adding to the compensation of their em- 
ployes, they will build up such a satisfied set of workmen 
that their organizations will be able to handle more jobs 
and do them at a smaller cost. This will enable them to 
underbid competitors and make their position in the con- 
tracting field stronger. 

Those experts who are introducing scientific management 
into the construction field are known by several titles — 
efficiency engineers, construction economists and construc- 
tion service experts. Their ob j ects are all the same — greater 
efficiency. Men's methods may differ somewhat, but if 
each is the expert that he claims to be the results will be 
very much the same. 

The question, '^Can this kind of management be applied 
to construction?'' is asked. The answer is that it has been 
and is being appUed with wonderful success, in spite of the 
hue and cry of contractors themselves, the views of some 
engineering papers to the contrary, and the lack of confi- 
dence of many business men that contracting is susceptible 
of being benefited by scientific management. 

One journal says : '^Efficiency engineering is being made a 
nuisance in some parts of the country. The fact seems to 



4 MANAGEMENT APPLIED TO CONSTRUCTION 

be that under certain conditions it is undoubtedly possible 
for a skillful efficiency engineer to suggest methods of con- 
ducting manual operations which will save money. These 
conditions are (a) the continuous repetition of the same 
acts, (6) the doing of these acts by numerous people, 
and (c) the grouping together of the people doing the same 
kind of work. ... Where, however, the same work 
is rarely repeated, and, if it is, the same man does not per- 
form it twice, and the operations are conducted at widely 
scattered places, efficiency engineering ceases to have any 
peculiar advantage and becomes merely a selection of men 
and machinery. 

'^Attention is called to these limiting conditions because 
the good work which efficiency engineering can accomplish 
in its legitimate field when conducted properly is likely to be 
made ridiculous in the opinion of many people unacquainted 
with it through the erroneous assumption that it is put 
forward as a sure cure for every business ill. Unfortu- 
nately, experienced efficiency specialists are in great demand. 
Therefore, unless the conditions are particularly favorable 
for their work, the manager will find it best to go into 
the subject by himself with the help of the many excellent 
books on it." 

Comment on the foregoing editorial is hardly necessary. 
The writer of it condemns efficiency engineering for the 
very uses where it is most needed. Scientific management 
is not limited to manual labor, but applies to the entire 
subject as previously outlined, and especially to the selec- 
tion of men and machines. 

Books and Experts 

As stated by one authority, the man depending upon 
books alone to learn and apply scientific management ^'be- 
comes merely an imitator and has all of the earmarks of 
trying to learn it out of a book." 

Books on any subject are not to be cried down. They 
are excellent guides and help to teach new doctrines. 



WHAT IS SCIENTIFIC MANAGEMENT 5 

But it takes more than a book on banking to make a 
successful banker, and it takes more than a book or two 
on scientific management to make a successful manager 
or even to allow him to succeed in changing his methods 
of running his work. 

To obtain the best results, he must use the services of 
experts and such books as are suited to his particular line 
of work. These will be an aid in following the work of 
the expert and will allow the manager to understand the 
principle involved. It might seem that a man should be 
able to apply such management to his own work with- 
out the aid of outside help. To some extent he can do so, 
but it is seldom possible to obtain as efficient results as 
with the aid of an expert. 

The reasons for this are numerous. The manager or 
contractor is generally so busy keeping the work going and 
attending to the many details that, even if he sees the need 
of improvements, he seldom has the time or opportunity to 
change methods or try new ideas. To turn these things 
over to an inexperienced man to work out may mean a 
greater expense in conducting experiments than the man 
may ever be able to save in eliminating wastes. 

Employ a man with some experience in this line and 
place him within the organization and every one, from the 
general manager down, will be against him or else he will 
fall in with those in charge and help to keep in vogue the 
old methods. Such a man, working under an outside 
expert, will obtain results, but by himself, he will hardly 
effect enough saving to pay his salary. 

With the outside expert it is different. He must make 
good. Hired by the month or season he must effect such 
savings that his own fee or wages will be insignificant as 
compared to them. If he does not do this, his employ- 
ment will cease. He is not a part of the organization; 
he is outside of it and serves only the contractor. He is 
not bound down by the traditions of the organization. 
He neither serves his own interests nor those of the one em- 
ploying him by trying to please the general manager or 



6 MANAGEMENT APPLIED TO CONSTRUCTION 

others in the employ of the contractor. He can change 
old methods, destroy old traditions and tone up an or- 
ganization as not even the employer can do, for he is 
without sentiment, looks only for efficient results. 

Two Methods of Applying Scientific Management 

In applying scientific management to construction work 
there are two general methods. One is to apply the idea 
to details; the second to apply it to the job itself. Each 
will show a saving, but the two together will effect the 
greatest economies. 

For instance, much study and time may be given to 
some detail when the general methods are wrong. System- 
atizing of shoveling by hand may effect a great improve- 
ment on a job where hand work should not be used, but 
where machinery could be employed to greater advantage. 
Likewise, much money may be spent in reducing the cost 
of handling concrete with buggies instead of barrows when 
it would be possible to install a concrete mixer that 
discharges the concrete into place. Again, time and 
money may be spent in developing certain methods 
of doing work and installing machinery when, if the work 
had been properly planned, entirely different methods 
would have been used, causing the job to be conducted 
in a much more efficient manner. 

Hence, in all construction work the first thing to do is 
to plan the job from start to finish. Jobs can be and are 
being run to make a profit without such planning or by 
only partial planning, allowing general methods and details 
to be decided upon from day to day. But the greatest 
possible profit can be made only by previous planning 
and by arranging a schedule of work. 

No one must assume that in planning work in advance 
the superintendent is eliminated, for he is not; his functions 
are merely changed somewhat. It takes a higher type 
of manager to plan a job in detail from start to finish, 
arranging schedules, forces and machines, than to do work 
as it is now done. It is necessary to study carefully the 



WHAT IS SCIENTIFIC MANAGEMENT 7 

ground, work, drawings, specifications and details, the 
listing of quantities and other things. 

The results obtained by careful planning will excel those 
of deciding each night upon the plans for the next day. 
The latter arrangement means haphazard management. 
Begin a job properly and it is much easier to take it through 
to completion, and to start off the second and third jobs. 

Applying scientific management to construction work 
as a whole and not to the details only, means that the work 
must first be planned and routed. This necessitates the 
destruction of old traditions, and makes the new manage- 
ment revolutionary, which causes many contractors to 
hesitate to adopt it. The contractor thinks the old ways 
that he has used for years must be the best, and that an 
outsider cannot come to him and tell him more about run- 
ning his work than he himself knows. 

For this reason many economists must work to a dis- 
advantage. They must take up the details first and im- 
prove upon them before turning to the great work of chang- 
ing the entire system. The economist must, in some cases, 
fail because of these very conditions. Given a free hand 
and an opportunity to commence properly, the gain to the 
contractor would be quicker and greater. 

^'My Work is Different'' 

This is an expression that nearly every contractor uses 
at times. He is asked why he is not using certain kinds 
of machines. His reply is that they are not suited to his 
work. When told that such machines are being used on 
similar jobs his answer is, ''But my work is different. '* 

Upon one occasion the author visited a Canadian city 
where two large jobs were being carried on, one on each side 
of the harbor. So far as the foundation work was con- 
cerned they were identical, yet one was being done almost 
entirely by hand methods while on the other improved 
machinery was being used. The general manager of the 
job using the hand methods was asked why he did not use 



8 MANAGEMENT APPLIED TO CONSTRUCTION 

the same kind of machinery as was being employed on the 
other work. His reply was, ''My work is different/' 
Further questioning disclosed the fact that he had not even 
visited the other job. His work was not different and the 
same kind of machinery could have been used, much to the 
benefit of all concerned. 

The same answer has been given in many cases to queries 
regarding the use of certain methods or the adoption of new 
ideas about management. It is a fact that most men 
believe that their work is different from that of other con- 
tractors. The merchant and manufacturer think the same 
of their business. 

Naturally every construction job differs to a certain 
extent, from others. In many ways, however, they are 
similar. It is by picking out these similar features and by 
applying new facts and business methods copied from others 
that many benefits can be gleaned. The broad-minded 
man, instead of resting on the assertion that his work is 
different, will attempt to find out in what respects his work 
resembles that of other contractors, so that he can profit 
by their experiences as well as his own. 



CHAPTER II 
OLD VERSUS NEW MANAGEMENT 

On construction, once a job is secured, the first essential 
of modern management is the planning of the work. The 
lack of this planning is seen on every hand among contrac- 
tors — on jobs large and small. In hundreds of cases it 
means the loss of all profits. Unforeseen conditions are pre- 
vented and the job is carried along on schedule by the most 
economical methods by planning the work ahead. 

On one job two steam shovels were excavating a large pit 
in a hillside. Rock, encountered unexpectedly, had to be 
blasted. The overburden, some 15 to 25 feet in depth, 
had to be kept separate from the rock, and stripping was 
necessary. For this reason the steam shovels and much of 
the other work, were stopped while men with carts and 
scrapers were removing 30,000 to 40,000 cubic yards of 
earth. Here were two wastes. The first and most notice- 
able was the stopping of the work; the second was the ex- 
pensive methods used to excavate the overburden before 
the work could be resumed. 

If the job had been planned instead of deciding 
various questions from day to day this rock would have 
been located and the quantity of the overburden calculated 
months in advance. Instead of delays and expensive 
methods, this work would have been done in advance by 
suitable plant and at the minimum cost. This job was a 
large undertaking involving the expenditure of millions 
of dollars and was being done by an experienced construc- 
tion company yet there was a very evident lack of plan- 
ning and efficient management. 

9 



10 MANAGEMENT APPLIED TO CONSTRUCTION 

On another job the concrete mixer was worked only 
a part of the time. The reason for this was that it was not 
thought possible to keep the forms ahead of the concrete 
placing. This showed a woeful lack of planning and man- 
agement, for on most jobs the forms can be placed so that 
the mixer works almost continuously. 

Running a Job From Day to Day 

A contractor and his general manager met as usual one 
night after their evening meal to talk over the day^s work 
and to plan for the next day. The work in question was a 
large railroad contract with a few sub-contractors on it 
and several of the contractor's own camps. 

^'We did a good day's work today/' announced the 
general manager. ^^All the forces were full, and every- 
thing ran smoothly at Camps One and Two, excepting that 
at Two I found them nearly out of coal. I doubled back 
on my horse to Camp One and had several wagon loads of 
coal carried to Two. Then I had to go to the railroad 
station to change over the teams to hauling to Camp Two, 
so they would have plenty of coal tomorrow. This pre- 
vented me from going to Camp Three, so I can't say how 
they got along." 

^^Very well," said the contractor, '^suppose we have 
Jim, the bookkeeper, call up No. 3 and find out how they 
got along." 

^'Hey! Jim!" called the general manager, ^' phone No. 3 
and find out what they did there today; I'll talk to the 
'super' myself." 

He found that at this camp the work had gone along 
well, except that at five o'clock the concrete gang had run 
out of crushed stone and had been switched to other work 
for an hour to keep them employed. Only a few loads of 
stone had been received by night — not enough for the gang 
to start on in the morning. This stone was being bought 
at a crusher several miles across country and was being 
hauled by the contractor's own teams. 



OLD VERSUS NEW MANAGEMENT 11 

With the information thus given, the contractor and the 
general manager began to plan the work for the three 
camps, each employing about one hundred men, for the 
next day. 

At the start the question arose as to just how much 
each camp had done of the various classes of work, and 
how many men and teams had been worked in each gang. 

''I can't tell that," said the general manager, ^^ until I 
get my reports from the various camps in the morning." 

''We ought to arrange this differently," replied the con- 
tractor. ''We need this information each evening when we 
make our plans for the next day. When we get time we 
must arrange so we will have this information the same day. 
Now it will be necessary to find out how large the concrete 
gang is at No. 3, and how much coal they have at No. 2. 
These are the important matters for tomorrow morning." 

Accordingly some more telephoning was done, after which 
plans were again discussed. 

It was decided to have the general manager leave early 
in the morning for Camp Three. As Camp Two had 
enough coal for the day the manager was to take several 
teams from this camp to the crusher plant. At Camp 
Three several teams were to be taken out of a scraper cut 
and put into wagons. These extra teams, with all the regu- 
lar hauling teams from Camp Three were to haul 
crushed stone so that by noon there would be a supply on 
hand to start the concrete gang. 

Meanwhile two men were to overhaul the mixer, and 
the rest of the concrete gang was to be employed in re- 
pairing the steam shovel track on the dump at Camp Three. 

The contractor was to go to the railroad station with 
teams from Camp One and have them haul coal to Number 
Two so as to get an ample supply on hand to set the teams 
at each camp at their regular hauling for the next day. 

Thus the work was planned, the other forces being kept 
at their regular work. The next day the general manager 
and the contractor rode away before six o'clock to carry 
out their plans. Both men possessed an unusually large 



12 MANAGEMENT APPLIED TO CONSTRUCTION 

amount of energy. They hurried their teams and soon a 
great deal of the hauHng was finished. 

New Difficulties 

At noon the contractor, returning to his office, found a 
message from a sub-contractor, saying that some cast iron 
pipe had to be hauled and placed that afternoon or he 
would be compelled to stop two scraper gangs by morning. 
The contractor had to get busy at once. He knocked off 
two scraper teams at Camp One, hitched them to pipe 
wagons and sent a foreman and several men in another 
wagon, with tools and cement, to place the pipe. 

He rode along himself to see that the men started prop- 
erly, and before his return found that everything was mov- 
ing well except that a dinky serving a steam shovel had 
been derailed and the car replacers at that camp had been 
borrowed for another camp a few days before and not 
returned. The superintendent was attempting to replace 
the dinkey with track jacks. 

Another scraper team was taken from the gang, hitched 
into a wagon and dispatched for the replacers. By the 
time they arrived the superintendent had put the dinkey 
on the track and everything w^as going smoothly. 

Meanwhile the general manager had received word that 
the form makers at Camp Two, working on a large concrete 
arch culvert, were nearly out of certain sizes lumber that they 
were using that day. This surprised him. He had ordered 
that lumber himself, had figured the amount needed, and 
had received the bill for it several days before, properly 
checked by the timekeeper at that camp. He rode at a 
gallop to the concrete culvert. 

Arriving there he found that the lumber had been re- 
ceived as reported, but that the carpenter foreman had 
not been furnished with a drawing showing how the timber 
was to be cut and the forms designed. As no drawing 
had been made, the carpenter had followed his own ideas 
and instead of making each stick of timber give two pieces. 



OLD VERSUS NEW MANAGEMENT 13 

the framed length was made longer and there had been con- 
siderable waste. This caused the shortage of material. 

The damage was done, and the cheapest way out of it 
was to send five miles to the saw mill to obtain more timber. 
At this camp there was no scraper force to be drawn on, 
so the general manager rode out and hired two teams 
from farmers and sent them off with an order to the mill 
for the necessary timber. Thus, by quick action, a force 
of high-priced men would be kept at work the next day. 

A Foreman Saves Money 

On the ride back to his office along the line of the work the 
general manager found the various forces making good prog- 
ress. One foreman, however, stopped him to point out 
that he had three wagons in a run which he was loading by 
hand. The foreman felt certain that if he were furnished 
with four wagons and two teams of horses, in place of the 
three wagons with horses for each, he could increase the 
output of his crew and yet reduce the cost. This could be 
done by having his drivers leave empty wagons in the cut, 
while they took the loaded ones to the dump, changing the 
horses from one wagon to the other on each trip. 

This appealed to the general manager, as at that time he 
was short of horses for hauling, and an extra team and 
driver would be a decided help. Accordingly he talked the 
details over with the foreman and told him he would arrange 
with the superintendent to make this change in the morning. 

That such a saving could be effected had not occurred to 
the busy general manager. These things were part of 
his work, but his time and thought were taken up with the 
larger and broader problems of keeping the entire job going. 

Again, at night, the contractor and general manager 
met to discuss results and plan for the next day. The job, 
they thought, was moving on well and some profit was 
being made. Both being forcible, alert men, the job was 
being carried on from day to day, by close attention and 
by thrusting themselves into every emergency — keeping 



14 MANAGEMENT APPLIED TO CONSTRUCTION 

machines; men and teams at work, and changing them from 
place to place as necessity demanded. The contractor 
and general manager together directed the work. 

How Money Was Wasted 

This short story is told because its parallel has occurred 
and is occurring daily on hundreds of jobs throughout the 
country and because it offers a comparison with modern 
methods of management. 

On this job the general methods of doing the work and the 
kind and probable amount of plant had been decided upon 
in advance. Each day's work, however, and the various 
kinds of work to be done were planned from day to day and 
from week to week. Materials were ordered in advance as 
much as possible, but there were no schedules of time for 
this or for any details of the work, as would be used in 
managing a job on scientific principles. 

First, the cost records, lists of work done and materials 
received were not sent to the contractor's office until the 
day after they were made out. Nor were the records 
analyzed and compared with the amounts of work done on 
different days and with the original estimate. 

This fact placed the contractor and his general manager 
at a disadvantage in directing the work and keeping down 
the costs. These nightly conferences are good features, 
but if the work were planned along more efficient lines they 
would not be absolutely necessary, nor would the daily 
records be so essential in directing the work from day to 
day, for all details would be considered and provided for 
weeks in advance. 

The fact that the supply of coal ran short at one camp 
meant the extra cost of transferring teams and hauling coal 
from another camp. Running out of crushed stone meant 
another money loss. These things should not have hap- 
pened with efficient management, as ample supplies should 
be on hand and a daily report made of the amount on hand 
and received. 



OLD VERSUS NEW MANAGEMENT 15 

Teams were switched from one camp to another. This 
meant extra distance to be traveled. In addition, teamsters 
seldom do their best work when they are changed around 
from one place to another. 

The stopping of scraper teams at two camps and putting 
them at other work meant the breaking up of the regular 
scraper runs, adding to the cost of excavating, loading and 
dumping. Such things as this can be prevented. 

For six hours a concrete gang was placed at other work. 
Their foreman — a concrete man — did not do good work 
on the track, as he knew little about it. He was dissatis- 
fied; his men were quick to take the cue from him and did 
not overwork themselves in fixing the track. A smaller 
crew of regular track men would have done quicker and 
better work. 

Few contractors seem to be able to keep their con- 
crete gangs regularly at work mixing and placing concrete. 
This can and is being done under the proper system of 
management. 

The fact that scraper teams had to be stopped to haul and 
place cast iron pipe for a subcontractor was another mistake 
of management. This work could have been sublet with 
the grading to the subcontractor, or it should have been 
planned ahead, showing the need of progress reports even on 
work sublet. Under the proper system of management, 
pipe should be hauled directly to the opening for which it 
is ordered and placed in advance of grading. Not only was 
there a loss in this case due to stopping teams, but a 
foreman and his crew were taken from their work and 
sent across country, riding when they should have been 
working 

On construction track locomotives will be derailed fre- 
quently. In the case cited the accident was made more 
expensive by not having the proper tools at hand. Every 
locomotive should be equipped with a set of car replacers, 
as there is then no reason for replacers to be borrowed from 
one camp for another. However, if such things are bor- 
rowed, a proper system of checking up tools will insure 



16 MANAGEMENT APPLIED TO CONSTRUCTION 

their prompt return. Modern management takes care 
of this. 

Modern Management Cares for Details 

An expensive blunder was made in running short of form 
lumber. This could have been prevented, and a bill saved 
for hired teams and additional lumber, by having drawings 
made of all form work. Not only should such drawings be 
made, but also sketch cards should show how the various 
size sticks of timber should be cut and framed. The 
sketches should be so devised as to reduce the work to a 
minimum. Foremen and carpenters are found to waste 
lumber otherwise, and they will, in many cases, do more 
work in handling and framing timber than is necessary. 

The fact that a foreman stopped the general manager 
to discuss with him how to increase his crew's output and 
at the same time save a team and driver was commendable. 
With modern management the knowledge of foremen and 
workmen is anticipated and used to make the work more 
efficient. Methods are devised to have the men offer sug- 
gestions and for the management to assimilate such infor- 
mation for the common good of the job. 

Under modern management the contractor and the 
general manager, with a corps of assistants, plan the work, 
manage the schedules (both time and material) route the 
work, making drawings and instructions for all details, and 
devise reports. When this is done they no longer direct 
the work, for, in doing these things, they have already issued 
the directions. They become a part of the organization to 
carry out these directions, and it is as necessary for them to 
obey their own instructions and follow their plans as it is 
for the humblest apprentice on the job to do so. It takes 
as much ability, if not more, to do this than to direct 
work under old methods. 



CHAPTER III 
PRINCIPLES OF MODERN MANAGEMENT 

Some contractors claim that their jobs are always plan- 
ned in advance and that the work is done according to a 
well-thought-out plan. If asked to see their plan they 
finally state they have nothing on paper but have planned 
the job just the same. This means that the contractor 
and his superintendent and possibly his engineer, if he 
employs one, have talked the matter over before starting and 
have, from time to time, discussed their plans as the work 
progressed. Thus machinery has been ordered and placed 
at work, certain forces have been employed as they were 
needed and building materials have been ordered. Some 
plant has been on the job before it was needed and has been 
moved from place to place as desired. Men have been kept 
busy and the cost of the work has been noted on cost 
forms each day, but no one knows whether these costs are 
lower or higher than the estimates. 

Some machines have not arrived when they were needed 
and hand methods have been used temporarily. Enough 
men have been employed on certain parts of the job while 
insufficient forces have been used on other parts, hence there 
have been delays that have caused one gang to wait upon 
another. Materials have been brought onto the job in 
such large quantities that they have been in the way and 
some of them have had to be rehandled unnecessarily. 
At other times delays have been caused by lack of material. 
These details show the dearth of proper planning of con- 
struction jobs. 

2 17 



18 MANAGEMENT APPLIED TO CONSTRUCTION 

Planning Construction Jobs 

Planning consists of many things. First, it demands 
complete plans and drawings for the work in hand. Plans 
cannot be made for building a structure unless the details 
of the design have been prepared and from these the kinds 
and quantities of the work determined. There must be a 
very complete knowledge of the work. There must be a 
schedule showing the time of carrying on the job, so that 
machines can be installed when needed and supplies can 
be on hand so that no extra expense will be caused either in 
rehandling or in waiting. The various details must be 
mapped out and charts made of them. The items of work 
must be separated and figured out and the various lines 
of work routed so that the entire job will move as a unit. 

Some contractors state that this is not possible, that no 
one can foresee all the possible conditions and that many 
things will occur to interfere with these plans. They say 
that only a theorist would advocate such a course. There 
can be little doubt that plans may fail and that, in some 
cases, changes may have to be made. These things now 
happen continually, but they will occur less often when 
all conditions and particulars are taken into consideration. 
Then, too, the few exceptions cannot be accepted as the 
rule. 

Another objection made is that it is impossible to plan 
work weeks, months and even years in advance. The fal- 
lacy of this is shown in war — in the handling of armies. 

The most able generals in the world have planned cam- 
paigns weeks and months in advance and their plans were 
carried to success, not simply by planning, but by following 
up their plans, making changes when necessary and giving 
attention to the many details. 

If it is possible to plan the details of such a campaign 
in advance, it is certain that a contractor can plan his work 
in advance. In fact, a contractor can be likened to a gen- 
eral. Each has men and machines to handle and must 
arrange for a commissary and for all necessary supplies. 



PRINCIPLES OF MODERN MANAGEMENT 19 

Men and machines are disabled or drop out and each must 
be replaced. The general plans his maneuvers from maps 
of the country and information furnished by his scouts 
and spies; the contractor plans his maneuvers from plans 
and specifications furnished by the engineer and from in- 
formation obtained by himself or subordinates in going 
over the proposed work. This is preparedness — and it is 
such planning as this that brings success in a war also it is 
such planning by a contractor that means the greatest 
possible profit from a job. 

The fact, too, that such planning is being done suc- 
cessfully is proof that it is practical and it goes without 
saying that work so planned is carried through to com- 
pletion at a low cost. 

Efficient planning is not easy. It is an undertaking 
that can be done by one man, but which is more successfully 
handled by a number of men, preferably by one man 
with a corps of assistants. 

The Highest Test of Management 

This planning is the highest test of management. It is 
not bound by precedents, it may be revolutionary, but it 
must consider only one thing, THE JOB — this word must 
be written in capital letters. It stands at all times for the 
structure that is to be built. It may be a dam, a railroad, 
a bridge, a building or any structure. The name of the 
structure can be substituted for THE JOB, but the latter 
stands for any kind of a construction contract. 

This type of management of THE JOB is superior to 
all others. It takes an abler man to inaugurate and to 
follow it up. It may mean the doing away with the indi- 
vidual who inaugurated the system and management. The 
working together spirit that makes the success of the work 
dependent, not on any individual, but upon the whole 
working force. 

It means obedience, from the manager down to the hum- 
blest workman — obedience to the plans made and to the 



20 MANAGEMENT APPLIED TO CONSTRUCTION 

accompanying instructions. Yet the men are not mere 
machines, for they are given an incentive to think and to 
improve upon old standards. It is the perfection of a 
system, devised by an individual, yet one which, 
although it takes into consideration individuaUsm, does 
not depend upon the individual, not even upon him who 
devised it. The ideal of management based upon scientific 
principles is to obtain the greatest efficiency. 

Not only are the old standards of management considered 
but there must be included much that is new to the manager 
and much that has hitherto been left to the workman, 
many details that have previously been considerd beneath 
the notice of the manager. These include too long a list to 
be recorded here. The most important, however, is the 
routing of the work — the handling and transporting of the 
materials. This is a wonderfully broad and extensive 
subject and will be discussed in detail later. 

Such work as the cutting up of lumber and the handling 
of it must be planned. Skilled workmen must not handle 
materials. It is their duty only to work upon them and 
place them. Every detail of manual labor of which artisans 
can be relieved should be done by unskilled laborer. By 
this means, in framing ties for a railroad bridge, a day's 
work for a carpenter was raised from 60 ties to 120, the 
saving thus effected being equal to a handsome profit. 
Nor is it left to a workman to decide how to cut up a piece 
of timber. Instructions should be issued to reduce the 
work to the minimum and to save lumber. Tools kept 
in repair and properly stored, save time in finding them and 
insure men against working with poor ones. 

Small details and methods must be learned from the 
men so as to include all of these features in the plans. 
Nothing must be taken for granted. Inducements should 
be offered to the men to make known their knowledge of 
such things to the management, and likewise to improve 
upon their own methods. 

Planning of jobs cannot be done to the best advantage 
unless those responsible have an intimate knowledge of 



PRINCIPLES OF MODERN MANAGEMENT 21 

construction plant — information about all kinds of ma- 
chines and the adaptability of each class of machine. Like- 
wise, the contractor should have a knowledge of the relative 
value of each manufacturer's machines. This plant knowl- 
edge is one that many contractors and their managers 
lack. Exact information is difficult to obtain, except from 
personal experience, and it is not possible to experiment 
with every machine on the market. For these reasons 
services of experts are needed in planning jobs. 

These points illustrate how intricate a problem it is to 
plan construction jobs well. But any planning of jobs, 
even if it is done indifferently, is a vast improvement over 
the hap-hazard method. A decided improvement will be 
made with each job and with many contractors following 
this type of management it will not be long before such data 
will be collected as to make the task much easier. 

The work of planning a job can be divided into five 
general headings, each with a number of sub-headings. 
Each heading can be handled by a different man or set 
of men, all working under one man. Or, if desired, a few 
men can handle the entire work unless the job is a very 
large one. In this case several departments can be estab- 
lished, the heads of each consulting with one another. The 
engineering department will have to serve most of the others 
in making drawings and sketches. The work of some of 
these departments, for some classes of construction, will 
last throughout the life of the job. 

For small jobs all of this work can be done by one man. 
The division of such work and the establishment of depart- 
ments depend upon the size of the operation, but the 
general principles are the same for a three hundred dollar 
job as for a three million dollar undertaking. Each head- 
ing and sub-heading will be listed and considered separately. 

1. Planning General Methods 

Under this heading the contractor and his manager, 
after visiting the job, and after making a close study of the 



22 MANAGEMENT APPLIED TO CONSTRUCTION 

plans of the owner and the quantities of work to be done, 
will consider the following: 

(a) General Plans. — An outline will be made of the 
general plans and methods to be followed throughout the 
life of the job. This will be turned over to the engineer 
to be mapped out in detail and such copies made as will be 
needed. 

(h) Plant Selection, — The various kinds of machines to 
be used will be decided upon and arrangements made to 
have them on the job when needed. This list will also 
be turned over to the engineer for use in making plant 
layouts. 

(c) Time Schedule. — From plans, quantities and other 
information a schedule of time for doing each class of work 
will be mapped out, so that the work will be done within 
the contract time. This schedule is turned over to the 
routing department. 

(d) Estimates of Cost. — When the job is bid upon esti- 
mates of cost are made to fix the bidding prices. These 
are gone over and revised to be used as a standard for com- 
parison of cost records. Such estimates are retained in the 
office to be used by the cost department or clerk. 

2. Designing and Engineering 

Under this heading comes the direct work of the engineer 
in charge for the contractor or his engineering department. 
Its work is most important and will extend to the other 
headings or departments. 

(a) Making Charts and Plans. — All the general charts 
and plans will be made by the engineering department and 
general instructions and information furnished in writing 
from such charts and plans. 

(6) Designing Plant Layouts. — Surveys will be made of 
all work and sites for plants and storage yards, and from 
such surveys layouts will be planned for installing plants 
and serving them, as well as storing and handling materials. 



PRINCIPLES OF MODERN MANAGEMENT 23 

(c) Designing Structures and Rigging. — This is done by 
the engineer in the office and is not left to the discretion 
of the foreman or workman in the field. The plans so 
made are standards, many of which can be used on dif- 
ferent jobs, thus saving extra work and allowing the men 
to become accustomed to standard designs. 

{d) Quantities of Work and Material Lists. — These are 
made from data and plans furnished by the owner and are 
absolutely necessary if the work is to be planned intelli- 
gently. All the work of this department is used by the 
next, the routing department. 

3. Routing Work 

Much of this must be done in advance of starting the job, 
but it continues throughout the contract. 

(a) Sequence of Work. — The first task in routing work 
is to decide upon the sequence of the work, especially upon 
how one detail follows another, as well as how the various 
classes of construction are carried along to make a com- 
plete job. 

(6) Routing the Handling of Materials. — In this the ar- 
rival of the materials upon the job is arranged and also 
their storage. The handling of the various materials is so 
arranged as to reduce this work to the minimum. This 
eliminates many wastes. 

(c) Distribution of Work. — Under this sub-head the work 
is so routed and distributed as to make the cheaper men 
do as much as possible and the higher-priced men no more 
than necessary. It is also so planned that machines and 
teams are served so that they are not idle, thus keeping 
the costs at a minimum. 

(d) Number and Size of Gang. — From the distributions, 
the plant layouts and the time schedule, the number and 
size of gangs needed and the make-up of the various 
gangs are decided upon. These are estimated carefully 
at the start so as to complete the job on contract time. 



24 MANAGEMENT APPLIED TO CONSTRUCTION 

Conditions may arise, however, that will cause changes to 
be made. 



4. Instructions For Workmen 

The management proper assumes the direction of the 
workmen instead of allowing the men to follow their own 
methods and inclinations. 

(a) Instructions for Mechanics. — All instructions for me- 
chanics and artisans are furnished in writing, accom- 
panied by sketches, whenever necessary. Such instruc- 
tions should be issued in series and many of the cards can 
be copied for use again. This is work that must be done 
daily and it is possible to make these instruction cards part 
of the cost keeping system. 

(6) Instructions for Common Laborers. — These can sel- 
dom be written but must be given to the men orally by the 
superintendent and foreman and at times must be practi- 
cally demonstrated. Men must be taught how to work 
and how to follow the best methods and, in some cases, how 
to handle their bodies and tools. The instructions for 
all of this can be issued to foremen in writing and illus- 
trated with diagrams and sketches. 

5. Basis For Rewarding Workmen 

To induce men to obey and put forth their best efforts 
to reduce the contractor's cost, an incentive must be offered 
to the men that will guarantee their wages and something 
extra if their work has merited it. This becomes an impor- 
tant department and means that the office is dealing directly 
with the men. The work of this department is divided 
under two headings : A. Tasks; B. Costs. 

A. Tasks. — Tasks must be set that will allow the poorest 
workmen to earn a living wage and certain bonuses fixed 
that will give additional compensation for increased work. 

(a) Deciding Upon Wages. — For all of this there must be 
a basis for wages of all men, fair to them and also to the 



PRINCIPLES OF MODERN MANAGEMENT 25 

employer. By instructions and assistance each man must 
be made, if possible, an earner of a daily bonus. Thus he is 
rewarded liberally and the contractor is netted an additional 
profit. 

(6) Further Incentive to Workmen, — To prevent making a 
man an unthinking machine, further incentive must be 
offered in the way of a bonus to have a workman impart 
his knowledge to the management and to keep the workmen 
thinking and devising new methods for increasing the out- 
put of machines and men. This may be in the work he is 
doing himself or that being performed by others. 

B. Costs. — Cost records will show the results that are 
being obtained from the men and the collection of costs will 
assist in fixing a basis for rewarding workmen. 




lA^' 



t 



' CHAPTER IV 
FINANCES AND EFFICIENCY 



Before discussing in detail the various features of modern 
management outlined in the previous chapter it is necessary 
to take into consideration some general features of con- 
tracting and some of the details of modern studies made in 
connection with modern management. This will make 
the entire subject easier to grasp, as the treatment will be 
more comprehensive. 

Modern Management and Finances 

The financial side of modern management as applied 
to construction work is not different from that in any other 
line, but it presents a peculiar proposition. A contractor 
making money feels that he is carrying on his work by the 
proper methods and that no one can improve on his scheme. 
He will also reason with himself that any outsider is an 
unnecessary expense and may tend to break up his 
organization. 

On the other hand, a contractor who is losing money, 
although he is trying every expedient to make changes in 
his work and turn his jobs into profitable ones, will feel 
that he has not the money to pay for the services of an 
expert economist, who may be able, by improved methods 
and by eliminating wastes of labor and materials, to make 
the jobs net a nice profit. Thus each man, for different 
reasons, hesitates to engage an expert and both because of 
money consideration. 

An efficiency expert, if he is competent, and allowed to 
carry on his work unhindered and receives support from the 
contractor and his superintendent, will pay himself. He 
will effect such a saving on the work as to pay his own fee or 

26 



FINANCES AND EFFICIENCY 27 

salary and net the contractor some additional profit. The 
economist is not looking for a week's work, but for an 
engagement extending over some months, and he must 
make good in order to have his employment continued. 
Thus he solves the question of paying himself. 

As he enters into this financial question, so does he enter 
into other phases of the financial side of contracting. 
Modern management begins with estimating on new jobs. 
The proper system will prevent mistakes, and will place 
estimating on such a basis as to eliminate from contracting 
some of the elements of chance. It will also give a reliable 
standard by which to judge the efficiency of the jobs from 
day to day and from week to week. Then, too, a profit 
cannot be made on a job if the bidding estimate is too low. 
This is evident, and modern management is one means of 
preventing such a financial disaster. 

Capital Must Be Considered 

In carrying on work the capital in hand must be con- 
sidered. In other words, the job must be planned to suit 
the finances. It is not always possible to obtain new ma- 
chines or those best suited for the work. There may not be 
money at hand with which to purchase them. It is, there- 
fore, part of the business of the management to plan the 
work so as to earn the money. This is done in two ways: 
by reducing the cost of some of the work to increase the 
profit, and by planning the sequence of the work so as to 
finish certain parts by a given time, in order to earn enough 
money to pay for such machines as may have to be 
purchased. 

Modern management is the opposite of that principle 
that attempts, by expensive speeding-up methods, to make 
a losing job a profitable one. Many contractors have 
attempted this to their sorrow. Before speeding up is 
brought into play there must first be a cleaning up — the 
doing away with all waste and the adoption of the most 
improved methods. For it can be seen that if wastes are 



28 MANAGEMENT APPLIED TO CONSTRUCTION 

going on they are only increased by speeding up the work. 
A steam shovel operated incorrectly is not being improved 
upon by working it both day and night. It is only hasten- 
ing the contractor into bankruptcy. 

It becomes evident that modern management embraces 
the financial side of contracting as well as the operating end. 
This is not only true in starting operations but is also the 
case from month to month. If any class of work or any 
contract is not netting a profit, then it is necessary to go 
into such financial details as to find out why these things 
are so, and, the cause once found, it becomes possible to 
apply the remedy. 

Some classes of work that cannot be done by the general 
contractor at a profit may be let as a sub-contract on a 
profitable basis. This may be due to the contractor's 
lack of machinery, or skilled workmen, or to the fact that 
overhead charges are eating up the profits. The sub- 
contractor may not suffer from such causes and at a smaller 
price is able to make money. 

An Exhausted Bank Account 

A contractor with an exhausted bank account needs the 
services of an economist more than does the man with 
ample capital. He really has nothing to lose and much to 
gain. Modern management, if properly applied, especially 
if the contractor has the ^'efficiency will" — belief in this 
modern system of management — will go far towards chang- 
ing a bank account. It will not create a business without 
capital, but it will take a going contracting business with a 
depleted bank account and within a few years create a sur- 
plus of cash. These statements are not made on hearsay or 
based upon theory, but upon actual practice in the con- 
tracting field. 

It is evident that if such things can be done with limited 
credit and funds, then much greater results can be obtained 
when ample capital is already provided. Then it is possible 



FINANCES AND EFFICIENCY 29 

to plan work on an even better basis, to obtain results that 
in the end will net even greater profits. 

Finances handled in contracting with these ends in view 
not only means a profit, but means even more — the greatest 
possible profit to be made from each job. 

For these reasons, if a contractor decides to engage an 
efficiency expert, he must make up his mind that he is to 
hide nothing from the expert. His financial standing must 
be made known. His standing for credit with merchants 
and manufacturers, and also his resources as to cash and 
plant, must be laid before the expert. These things done, 
the expert starts his studies in efficiency on a known basis 
and is able to give the best that is in him, amply repaying 
the contractor for his confidence. 



Efficiency Must Be Applied 

Efficiency can be taught ; it . can be written about and 
studied; it can be preached; it can be illustrated by many 
examples, but no one can profit by it unless it is applied. 
The degree of efficiency reached matters but little, whether 
it is 10 per cent or 100 per cent, if the party most interested 
simply reads or listens and then goes on following his old 
methods. Food must be eaten to furnish nourishment to 
the body; efficiency must be applied to produce its benefits. 

Every intelligent man talks of efficiency, believes in 
efficiency, and even asserts that he himself is efficient. 
Likewise, if he is a contractor, he knows that his organiza- 
tion is not 100 per cent efficient, yet not one contractor out 
of a hundred will consider using an efficiency engineer or an 
economist. 

Most contractors claim that they are doing some work of 
this kind themselves. • Some state that they have employed 
some engineers who are in charge of their cost keeping and 
efficiency work. These men are a help. They learn much 
of the contractor's methods and are able to make improve- 
■ ments; .but in. spite of tl>e fact that they earn more for their 



30 MANAGEMENT APPLIED TO CONSTRUCTION 

employers than they are paid, this system of applying 
efficiency or modern management never brings an organi- 
zation anywhere near 100 per cent efficiency. 

Were the Old Days The Best? 

There are a number of reasons for this. Some engineers, 
being kept closely to their work, become accustomed to the 
very methods they are supposed to change, if it is necessary 
to do so. It is an inborn characteristic of man that he 
thinks that those things with which he is familiar and 
becomes accustomed to, are the best. This has been the 
song of the world since the early history of man. Nestor, 
the ancient Greek hero, told how the men of his early days 
were the best. Herodotus told how the old times and cus- 
toms were better than those of his day. The ancient bards 
told the same story. Yet the world has made wonderful 
strides in each century and will continue to do so. But the 
man who attempts to revolutionize customs or anything 
else, is ahead of his times. The world changes, but it 
changes slowly. 

Efficiency Within The Organization 

Another disadvantage under which the efficiency engineer 
within an organization labors is that he does not visit other 
jobs. Thus he does not see other methods being tried. He 
does not see new machines, or different types of machines 
and appliances. He is also cut off from seeing ingenious 
devices for saving time and money, and those hundred and 
one things that mean better management and more efficient 
work. 

He can get the full benefit only by actually seeing and 
having experience with these things. It is possible to read 
of many things in trade journals and engineering papers, 
but unfortunately the writers for such papers are limited 
as to space and it is seldom possible to go into such detail as 
to make possible the application of all that is set forth in 



FINANCES AND EFFICIENCY 31 

these journals. To a great extent this is true of books. A 
writer can set forth the general principles and many details, 
but he cannot put down that personal experience and 
judgment that counts for success. 

One factor that counts against the application of effi- 
ciency within the organization is the personal feeling that 
exists in every organization. The engineer makes friends. 
He will probably favor his friends and accept their opinions 
instead of obtaining facts from actual observation and 
records made by himself or assistants. Then, too, he will 
make enemies. And a general manager or superintendent 
will resent many things that the efficiency engineer may 
have to do and will prevent the best results from being 
attained. In many cases changes of methods and machines 
will not be made when they should, because several high 
officials will get the ear of the contractor and show rhat the 
efficiency engineer is a theorist, while they are practtcal men 
and that these charges mean only increased costs. These 
things mean discord which is a great disorganizer and re- 
duces the efficiency of the forces. 

Lack of plant knowledge and prejudice are likely to 
rule the selection of machines. Every man has his prefer- 
ence for certain machines. This preference may be based 
either upon an extensive experience with different ypes and 
makes of machines, or upon a limited experience twith only 
one or two machines (in too many cases the latter). Thus 
prejudice instead of knowledge may govern. It is seldom 
possible within a single organization, even if it is a large 
one, to gain that intimate knowledge of plant that is ob- 
tained by experience with many contractors in different 
sections of the country. 

Another feature of efficiency work done by a regular 
member of the organization is that the work is only pro- 
ductive of money results indirectly. Hence the efficiency 
engineer is considered as one having plenty of spare time, 
and is soon loaded up with extra work that will bring 
direct results. Thus it is possible to sidetrack entirely 
the efficiency end of the business. 



32 MANAGEMENT APPLIED TO CONSTRUCTION 

Too many contractors think that to introduce modern 
management means first to break up his organization and 
reduce its efficiency before more beneficial results are ob- 
tained. Some economists may work in this manner, but 
few who are competent do so. 

Many contractors have good intentions of introducing 
better management and better methods into their work, 
but it has been stated repeatedly that the road to the lower 
regions is paved with the good intentions of well meaning 
men. 



Efficiency From Without The Organization 

The best results are in most cases, obtained by employing 
a man from outside the organization as an expert to intro- 
duce modern management and work for perfect efficiency. 
For a small organization this one man may be enough. For 
larger organizations this expert acts as a consultant, while 
one or more men working under his directions are placed 
in the organization. 

The outside expert is compelled to make good. He 
is looking for employment and not for new clients each day. 
Therefore his work must bring results quickly or else, as in 
the case of a doctor, a new one will be called in to succeed 
him. Then, too, the outside expert builds up his practice 
by being able to show satisfied clients. 

He brings to an organization not only the best that is 
in him, but also the best from every organization in which 
he has worked, and likewise from all the jobs he visits. His 
experience is based upon personal touch. He has the ad- 
vantage of both the articles in papers and books, some of 
which may be of his own writing. 

Seeing many different types and makes of equipment 
and having made both time and motion studies of them, 
the expert has intimate knowledge of a greater variety of 
machines, and this knowledge is enhanced by his securing 
more clients. 



FINANCES AND EFFICIENCY 33 

The expert serves only the contractor. He has neither 
friends nor enemies in the organization, and thus stands 
aloof from all the employes, working, not to antagonize 
them, but rather to mould them into an organization that 
may be 100 per cent efficient. 



Efficiency Will 

These things being so, why then are contractors not em- 
ploying experts to apply modern management to their 
construction jobs? The answer is a simple one and is fur- 
nished by one of the ablest economists in the country, B. A. 
Franklin, who states that these employers and captains of 
industry do not possess '^ efficiency will." 

This term he has coined and defines as follows : 

"Efficiency is, first of all, or needs first of all for successful operation, 
a certain state of mind. This state of mind involves first the belief 
that efficiency, beyond that already attained, is certainly possible, 
attainable, and vitally valuable; second, the understanding that effi- 
ciency, like any other result of value, is to be attained and maintained 
by study, records, organization and inspection demand maintenance ex- 
pense; and thirdly, an active determination of the executive organiza- 
tion to co-operate enthusiastically and continually. -This state of 
mind may be called efficiency will." 

This efficiency will is absolutely necessary if modern 
management is to be applied and the greatest possible de- 
gree of efficiency attained. It is not enough for a man 
to state that he has it; he must show that he possesses 
it by engaging in the work of bettering his management. 

Excuses count for naught, showing only that a man lacks 
confidence in himself. One contractor said, '^I believe 
in efficiency and have been giving the subject lots of 
thought and have already bettered my work, but times are 
dull and I only have little work going on, so I have decided 
to defer action in this matter until I get more work." 

Another said: ^'I have gone into this subject and it 
possesses merit, but I am too busy to tackle it now and 



34 MANAGEMENT APPLIED TO CONSTRUCTION 

can't afford to run the chance of breaking up my organiza- 
tion." 

A third stated: ^^I am convinced there is a whole lot in 
this efficiency business, but I am a small operator. It is 
better suited, in my opinion, to contractors doing a large 
business." 

'^Improved management and methods," a fourth con- 
tractor exclaimed, ^'is the crying need of every contractor. 
It is a broad field, but my work is different from most 
others. My organization, though a large one, has been 
built up slowly and we have adopted many new ideas, 
and could not afford to make changes at the present 
time." 

''Scientific management," said another contractor, '4s 
all right for the man who can afford to hire experts, but 
I am losing money and have not any to spare for such 
things. I want to use my money to pay my bills, and am 
pushing my work for all it is worth to do so. I will con- 
sider it when I get some money ahead and can afford such 
luxuries." 

Many more remarks similar to these could be quoted. 
None of these men, in spite of their statements, had the 
efficiency will, for if they had they would have given the 
answers to their own statements. 

When work is slack is the easiest time to change an or- 
ganization and get men accustomed to new methods, for 
when more work is taken up the system has only to be 
extended. 

On the other hand if a contractor is very busy his leaks 
are apt to be more numerous, and in the attempt to make 
greater speed new leaks are likely to occur. Better man- 
agement may prevent these things. A busy man wants 
the greatest output for the least money and the expert can 
give him this. 

The small operator needs efficiency as much as the con- 
tractor doing a larger business, for a money loss that would 
have but little effect upon the larger operator may use 
up the other man's small capital and put him out of business. 



FINANCES AND EFFICIENCY 35 

Every man believes his work is different from that of 
others in his hne. It may be in some details, but the gen- 
eral principles are the same. An organization built up from 
a small one, even if it has been progressive in its ideas, is 
bound to have defects in it — many of long standing. The 
fact that an organization is old does not necessarily mean 
that it is a well balanced one nor that it cannot be 
improved. 

The man who is in financial troubles needs the services of 
an expert more than one who is making money rapidly. 
He cannot expect to make money by forcing his men and 
machines, repeating, in an exaggerated form, the mistakes 
that have caused his money loss. Then, too, an expert 
economist or efficiency engineer is not a luxury, nor does he 
cost the contractor any money, no matter if the operations 
are small or large, if the organization is busy or lacks work, 
if the contractor is in financial straits, or is making money, 
the economist pays himself from the money he saves by 
stopping the wastes of labor and materials, by giving better 
methods of estimating, inaugurating the use of better 
machinery, and by bringing new ideas to the organization. 

It is the desire to obtain these things and the ability to 
see that modern management will be the means to this 
end that gives a contractor the efficiency will. 

Efficiency engineering is in its infancy. Hence it is in a 
state of development. But it is steadily being given more 
and more recognition as a profession, and as a branch of 
engineering science. There may be some men entering the 
profession without the necessary experience and standards, 
and even without the natural ability or temperament, but 
they are no more likely to do harm than any other unworthy 
member of other professions. 

The business man's view must be considered in these 
matters. He feels that no one is as expert in his own busi- 
ness as himself. He has created his business; he has nour- 
ished it and built it up, and no one can be as successful with 
his organization as he is himself. His own individuality 
has counted in this and is the important factor. 



36 MANAGEMENT APPLIED TO CONSTRUCTION 

Again to quote Mr. Franklin: 

"The ability of individuals, it is true, has made for greater successes, 
but only as they have guided and animated or energized the general plan 
of operation. 

"Every business, then, has at least two general divisions. One 
division deals with the particular article or articles of manufacture, 
the machinery of its processes, its grade and quality and those elements 
which pertain to its peculiarities. But another division deals with 
methods and practices which in principle are necessary and common to 
all businesses, i. e., organization, planning, marketing, storekeeping, 
costs, waste saving, incentives to labor, etc. 

"Out of this common necessity there has logically grown the fact 
that there have been different developments along the line of this second 
division, and similar developments of varying degrees. Here and there 
analysis and experiment are still developing fundamental theories and 
improvements in practice of economic value in some business, which are 
of value to all. The busy main executive, tied down with daily detail 
of his own business and struggling with the difficulties of his own peculiar 
production and problem, cannot know of these developments; or 
knowing, generally, cannot put them into detailed practice." 

These are the duties that develop upon the expert em- 
ployed for this particular work. To employ such an expert 
on the part of the contractor there must be a proper state of 
mind, or efficiency will. 



CHAPTER V 

FUNDAMENTALS IN CHOOSING TYPE AND 
AMOUNT OF PLANT 

One principle or rule of modern management, as applied 
to construction work, is that of selecting and using ma- 
chinery for hand methods, and the use of modern appliances 
instead of obsolete types, keeping always in mind the selec- 
tion of those types of machines best suited to the particular 
class of construction and having the greatest range of work. 

This principle is being recognized by many of the leading 
contractors and engineers of the United States and Canada, 
yet in some details it is not being followed. It is also 
necessary to mention certain limitations to the use of 
machines. In other words, it is not only possible for a 
contractor to have too little plant, using hand methods 
when they should not be used, but, on the other hand, it is 
possible to use too much plant on a job and to own too 
many machines. 

In the past few contractors have given time and thought 
to this phase of their business. Those possessing little 
capital and indifferent credit have attempted to do much 
work by hand. Others having the means to buy plant have 
used it for the greater part of their work, yet have continued 
hand methods for odd jobs, beheving this to be cheaper. 
Some contractors have reasoned that if one machine of a 
certain type saved money, two would be better than one, 
and have bought more plant. 

Thus it becomes necessary to discuss these features so 
that the mistakes made in the past can be avoided. 

37 



38 MANAGEMENT APPLIED TO CONSTRUCTION 

The Economic Plant 

This is a subject that is of interest, not only to contrac- 
tors and engineers, but also to manufacturers. With any 
given sum of money to be expended upon construction 
work within a limited area, or, for that matter, on a conti- 
nent, for a year, what per cent of this money will be spent 
for plant? If data were at hand to answer this question a 
distinct step forward could be made by contractors and 
manufacturers. The contractor could limit his purchases 
and plan his work on a more economical basis and thus keep 
down certain overhead charges, while the manufacturer 
would be able to tell if he were doing all the business that 
he should be doing. With this knowledge, business could 
be handled on a better basis. 

As it is now, men must study their business continually, 
arranging for a peak load in manufacturing and construc- 
tion during prosperous times and retrenching during busi- 
ness depression. It is not possible to estimate he exact 
amount of plant needed by a contractor doing a given vol- 
ume of business. Each job must be treated separately and 
a decision made for every new undertaking. 

Lack of Plant 

There is a lack of modern plant on many jobs. This 
causes a great loss of money. Hand methods or obso- 
lete machines and makeshift devices are used. Modern 
methods demand that sufficient plant be installed upon all 
construction jobs. Not only is the unit cost of the work 
thus decreased, but the completion of the job is so has- 
tened that the overhead charges and the general expense are 
likewise reduced. A common excuse for a lack of plant is 
that of insufficient capital, which has been dealt with at 
some length in The Economics of Contracting, Vol. II, 
to which the reader is referred. Chapter IV of this book 
will likewise be of assistance in dealing with this subject. 



FUNDAMENTALS IN CHOOSING PLANT 39 

Using Makeshift Machinery 

It is quite surprising, in visiting construction jobs, to 
see how frequently makeshift expedients are being used 
at an extra cost, instead of plant that can be purchased 
for the same purposes at a small cost and operated econom- 
ically. There is hardly a large construction job where one 
or two such pieces of apparatus are not used at a greater 
cost than that of operating well made appliances. 

There are two reasons for this. First, some piece of 
plant or apparatus may be on hand that is not meant for 
the work, yet it is believed that it can be used economically, 
especially as the amount of work to be done with it is 
small. Second, those in charge may not know of various 
appliances that can be purchased for the work in question, 
so rig up something of their own. 

There are two causes for this. Although a contractor 
may keep cost recordg of his work, such records are seldom 
analyzed nor compared with the cost when different 
methods are used to do the same work. A comparison of 
the daily costs with a standard of costs or with the estimated 
costs used in bidding upon the job is seldom made. Thus 
quick conclusions may be made from impressions that seldom 
prove correct. Extra costs are lost sight of later as they are 
not analyzed, and the various troubles and delays caused by 
such makeshifts are forgotten after the job is finished, so 
that the same mistake is repeated on other jobs. 

The second cause is simply a lack of plant knowledge. 

Hand Methods 

Hand methods in construction cannot be eliminated en- 
tirely but for most classes of work they can be greatly re- 
duced by the intelligent use of machinery. The first essen- 
tial is for the contractor to know what machine he can 
obtain. 

In many cases, in spite of the fact that manufacturers 
are spending thousands of dollars in advertising their prod- 



40 MANAGEMENT APPLIED TO CONSTRUCTION 

ucts, as well as large sums of money in furnishing expert 
advice to contractors and engineers through their service 
engineer^ and salesmen — in spite of the fact that technical 
journals are publishing hundreds of articles annually on 
the use of all types and sizes of machines — a large number 
of contractors do not possess this knowledge. This alone 
shows the necessity for manufacturers to continue their ex- 
tensive campaigns of advertising and for the journals to 
continue their educational work. 

Within the past two years the author has visited cities 
of more than fifty thousand inhabitants where not a modern 
dump wagon was owned by a contractor and but a few 
concrete mixers. Not a road or street contractor owned 
a paving mixer, and it has been quite surprising how these 
conditions have been duplicated in other communities. 
Then, too, it is of interest to note how, in some sections, 
certain labor-saving methods are used, while in other locali- 
ties within a few hundred miles they seem to be unknown. 
With modern methods of travel and communication our 
whole continent is comparatively small, but it is a well- 
known fact that knowledge travels slowly and people are 
loath to give up old ideas and methods of conducting their 
business. 

There are three distinct lines in which hand methods are 
used that cause a large annual waste of money. The first 
is in excavation. There are on the market a very large 
number of devices and machines designed for all classes of 
earth and rock excavation. Some of these are designed 
for handling large amounts of material in an hour and are 
not suited for small jobs, nor for the odds and ends of a 
large job. But many of these machines are portable and 
designed to excavate as little as from 4 to 10 cubic yards 
per hour economically and can be used in many places 
where picks and shovels are now employed. The same 
machines can often have their output doubled or trebled. 
Then, too, there are a number of machines now meant to 
excavate where the cutting is light — that is, less than a foot 
in depth — and yet the total yardage may be large. 



FUNDAMENTALS IN CHOOSING PLANT 41 

In connection with the excavation of rock, small ma- 
chine drills can be used instead of hand drilling. For 
unwatering ground; instead of hand pumps for a limited 
amount of water, power-driven pumps can be used, espe- 
cially gasoline and electrically-driven pumps. 

A second class of work done by hand is concrete mixing. 
For small jobs there are now on the market many mixers 
operated by gasoline engines. Such mixers can be used 
where only a few yards of concrete are needed per day, 
or they can be used as an auxiliary mixer, where a large 
machine is used for most of the work. The fact that there 
is a large mixer on the job should not preclude the installa- 
tion of a small one. 

A third class of work in which much hand labor is 
customary is in handling and rehandling building materials. 
Cars and boats are loaded and unloaded by hand. Vehicles 
are generally loaded by hand, although to-day most of 
them are unloaded by dumping. Much of the material is 
rehandled by hand, as in serving it onto structures or into 
mixers, as with the materials for concrete. For nearly 
every one of these uses there are certain devices that will 
save money, the amount varying according to the quantity 
of material to be handled. For very small jobs it is not 
always possible to install machinery, but advantage can 
be taken of some simple devices and of planning the work 
so as to reduce the handling to the minimum. 

Excessive Plant 

Next to the shortage of plant, more money is wasted in 
buying useless machines — not useless from the standpoint 
of being idle, but rather because it was not necessary to 
purchase them. In other words, before purchasing a 
machine to enlarge a plant, the proper procedure is to ob- 
tain all the work possible from the old one, or from one 
unit. This is a statement that must be enlarged upon, for 
it embraces an intimate knowledge not only of plant, but 
also of serving machines and the installation of accessories. 



42 MANAGEMENT APPLIED TO CONSTRUCTION 

The fact that a man has a concrete mixer on a job is not 
enough. It may be an obsolete pattern, or it may be of a 
design unsuited to the character of the job. For this reason 
the various manufacturers of concrete mixers are now 
making different styles of machines, some of them having 
as many as ten different designs, each for a different class 
of work. For instance, a concrete mixer adapted to a build- 
ing job would not be the one with which to lay a pavement 
foundation, nor one for a heavy retaining wall. 

This is not only true of the same makes of machines 
but also of different makes. Thus a contractor may be 
using a certain type of machine of one make, and must 
have an increased output. He buys several others of the 
same make and still has to increase the number. Possibly 
if he had substituted another make, one or two machines 
would have been sufficient. This can be illustrated by two 
actual examples. 

A contractor building a sewer had a half-yard mixer. 
This did not give him output enough so he purchased 
another half-yard mixer of another type. The result was 
that the new mixer gave an output that was enough to 
carry on the job economically and he was able to sell the 
old one. This showed that the contractor had not selected 
the proper machine at the start. 

Another contractor had a large filtration plant to build. 
He installed several mixers for his concrete and, in order 
to obtain the necessary output, was compelled to increase 
the number until he had more than a dozen on the job, 
each being operated on a different part of the work. He 
needed additional concrete, and at last installed a central 
mixing plant, served by conveyors. With a large capacity 
mixer of a different type he obtained ample concrete, al- 
lowing all but one of the old mixers to be taken down and 
disposed of. The small mixer was used to do odd jobs on 
the outskirts of the large filter plant. 

These examples serve to illustrate the point to be made : 
that a single unit of the properly selected plant may be able 
to do much more work than a number of units selected 



FUNDAMENTALS IN CHOOSING PLANT 43 

with poor judgment and from meagre knowledge. As it 
is with concrete mixers, so it is with other apparatus. 
It may mean not only a greater output, but it may mean, 
and does in most cases, less investment in plant and also 
a great saving in labor. 

An eastern contractor recently published a statement 
regarding the tearing up of old pavement and the regrading 
work, the job was done with a steam roller and plows; 
wagons were loaded by hand. This method was changed 
for a small steam shovel, slightly reducing the plant in- 
vestment, materially increasing the output of work and 
reducing the daily cost by $15 to $20. 

Before deciding upon the purchase of additional ma- 
chines, besides knowing that the proper kind is being used, 
the first step must be to learn if the plant being used is 
operated to its full capacity. A system may be devised to 
save labor and at the same time improve the service. This 
may be applicable to hand methods, or it may mean the 
elimination of hand service and the installation of machines. 

A concrete mixer may be producing 100 cubic yards per 
day (served by hand). Systematizing this service may 
increase the output to 150 cubic yards. Serving the mixer 
by means of conveyors or other rehandling machinery and 
handling its output with buckets or cars may cut the labor 
costs per unit (by eliminating men) and increase the output 
to 200 cubic yards per day. The simple expedient of 
buying another mixer to obtain this additional 100 cubic 
yards would have meant possibly as large or even a larger 
investment for plant, and the expense of hiring more men, 
with the unit cost increased by the added capital invested 
charged against the 200 cubic yards. 

Few men can state that the utmost capacity of a ma- 
chine has been reached until they have tried in a number 
of ways to increase the output. Then, too, possibly what 
they have failed in can be done successfully by some expert. 
The author, in so simple a matter as operating wheeled 
scrapers, has increased the output of a gang of six wheelers 
by one-third by using four horses on a snatch team instead 



44 MANAGEMENT APPLIED TO CONSTRUCTION 

of only three. This was much cheaper than buying two 
more wheelers and two extra teams. The investment 
was much less and the unit cost of excavating per yard was 
reduced. 

Overhead Charges 

Too few contractors seem to realize that their general 
expenses frequently run quite high. In cost keeping such 
expenses are frequently ignored. Many contractors think 
from going over their daily field cost records that they are 
making money; yet at the end of the job there is a deficit. 

A few years ago a contractor was building a reinforced 
concrete reservoir for a steel manufacturing plant. During 
the course of construction he was ordered to do some extra 
work. He did as he was instructed, and in rendering the 
bill he added 10 per cent to his actual cost to cover his 
overhead charges or general expenses. The contractor had 
also asked the manufacturing company to do a few small 
jobs for him. Upon receiving their bill after he had pre- 
sented his own, he found that the company had added 
33-1/3 per cent to the actual cost to cover their item of 
overhead charges. The contrast was great and the con- 
tractor wished that he had been the last one to present his bill. 

This example serves to call attention to a very impor- 
tant item in all construction work. The treasurer of the 
steel company stated that they had kept very careful 
records of their overhead charges for a long term of years 
and the charges made the contractor were not excessive 
but were used in fixing a price on all of their products. 

Not only must the general expenses for the job in hand be 
considered, but many other expenses must be charged 
against the work a contractor is doing. Thus the cost of 
bidding on contracts that are not secured may amount to 
many hundreds of dollars in a year. If superintendents 
and foremen must be kept on the pay roll in dull times, or 
between jobs, such costs cannot be easily figured against 
any particular job. Many other office expenses are in the 
same class. 



FUNDAMENTALS IN CHOOSING PLANT 45 

On large jobs the general expenses may be a small part of 
the construction cost — less than 10 and in many cases less 
than 5 per cent — but on jobs amounting to only a few 
thousand dollars the percentage will be larger and may 
become greater than 10 per cent. 

Not only is it necessary to have some idea of the possible 
general expenses when bidding on jobs, but also while a new 
job is in progress the expense should be figured so as to 
apply the overhead charges to the daily cost records. This 
can be done in two ways: by taking an average of these 
items of expense for the preceding year or for a term of 
years, which makes the charge a false one, or by an arbitrary 
charge. The averaging of past expenses is necessary 
because it is not possible to obtain exact figures until the job 
is done. 

A closer method, but one that makes these charges more 
difficult to keep, is to make a weekly record of expenses and 
apply the results thus obtained one week to the next week^s 
daily costs. By this method large expenditures for any 
item of general expenses will be noticed at once, making it 
possible to look into the expenditures and curtail them if 
they are too high. 

Keeping the costs in this manner may make the applied 
cost high one week and low another, but for a season, a year, 
or the life of the job, the average is likely to be closer than 
that figured from previous years. 

Some items of general expense are incurred daily or 
weekly, while others are extraordinary, that is, only made 
at long intervals. The first ones are not often overlooked; 
the extraordinary ones are apt to be forgotten in making 
estimates. For this reason the folloT\ing list is given, not 
that it is complete, but rather to be used to make up a com- 
plete list for contractors engaged in different lines of work : 

1. Advertising. 

2. Inspecting new jobs. 

3. Making up estimates. 

4. Bidding upon jobs. 

5. Entertainment. 



46 MANAGEMENT APPLIED TO CONSTRUCTION 

6. Providing bidding bonds or certified checks. 

7. Cost of construction bonds. 

8. Signing contracts. 

9. Planning and routing new work. 

10. Subletting work. 

11. Employes liability insurance or compensation. 

12. Automobile insurance. 

13. Fire and other insurance. * 

14. Cost of accidents. 

15. Photographing construction. 

16. Office salaries. 

17. Office rent. 

18. Office supplies. 

19. Postage and telegrams. 

20. Telephone service. 

21. Printing forms. 

22. Cost keeping. 

23. Outside clerks. 

24. Superintendence. 

25. Automobiles. 

26. Horses for office use. 

27. Lights for work. 

28. Water for work. 

29. General camp expenses. 

30. Cost of construction buildings. 

31. Watchmen. 

32. Engineering. 

33. Legal expenses. 

34. Traveling expenses. 

35. Fees to experts. 

36. Salaries paid to hold men. 

37. Pensions. 

38. Contracting and engineering journals. 

39. New books. 

40. Taxes. 

41. Licenses and permits. 

42. Building and maintaining roads. " 

43. Interest on borrowed capital. 

44. Expenses of purchasing department. 

45. Personal expenses of contractor. 

46. Signs for jobs. 

47. Forfeits for delays in completing work. 

48. Charity. 

49. Life insurance. 

50. Contractor's association dues. 



FUNDAMENTALS IN CHOOSING PLANT 47 

All of these expenses do not occur on some jobs, nor do all 
contractors have the entire Hst. Many contractors carry- 
ing on large operations have the entire list and many addi- 
tional items. 

According to some methods of bookkeeping all of these 
items will be charged to one account; by other methods they 
are charged to several accounts. A division of the accounts 
is recommended so that the various items can be more easily 
checked up and in order that the aggregate of each account 
can be known and kept to the minimum. 

It is also necessary to keep these expenses for different 
jobs. Thus there will be general expenses for each job, as 
well as those that are applicable to all the jobs a contractor 
may have. 

For cost keeping and estimating, the various items must 
be assembled and so worked out as to apply the overhead 
charges to each unit of work. This can be done by a direct 
charge, or can be figured on a basis of a percentage of the 
unit cost. 

Another question to be given consideration is the over- 
head charges which are the result of a heavy investment in 
plant. Such charges are quickly increased by buying 
plant. There is, first, the interest charge on the capital. 
Then there are repairs and renewals while the machines are 
being used and the depreciation of the plant, whether it is in 
use or idle. Such charges and expenses are going on 
whether the contractor keeps account of them or not. 

During periods in which there is plenty of work, the drain 
of such overhead charges is not felt, for these expenses are 
chargeable over a number of jobs and form a small percent 
of any unit cost. But when hard times come these same 
overhead expenses become such a large proportion of each 
unit cost that there is no real profit in the work and the 
contractor is really hving on his capital or past profits. 

It is at such times that the real harm of too much plant is 
felt. The contractor is in the same position as the manu- 
facturer who has built a new factory or an addition to his 
plant during prosperous times, only to find it idle when a 



48 MANAGEMENT APPLIED TO CONSTRUCTION 

business depression comes. Not only has he used up avail- 
able cash, but his overhead is now excessive for the limited 
business he is doing. It is easier for the contractor, for he 
may be able to move his plant to a section where there is 
new work — a thing the manufacturer cannot do.* 

These are all items of bookkeeping, but they likewise 
enter into cost keeping and must be considered in manage- 
ment. Overhead charges due to plant must become a 
direct charge to the work; but overhead charges due to 
excessive plant and especially when some part of such plant 
is idle, must not be a direct charge against any job, but 
should be handled as a charge against the entire business. 
In this way it is handled through the ^^ profit and loss" 
account. In fact, not only is the overhead expense a direct 
loss against the contractor's entire business but the items of 
plant that were never needed and can be classed as excessive 
plant really have eaten up some of the profits, although it 
is customary to carry such charges in the plant account. 
Profits come too hard in contracting to be wasted on the 
purchase of excessive plant. Cash in hand is alwaiys worth 
more than any piece of idle machinery. 

In purchasing plant an attempt should be made to keep 
it uniform — that is, instead of buying one machine of one 
make and a similar machine of another make, the con- 
tractor should, as much as possible, get the same make. It 
is quite easy to give this advice, showing that uniformity 
means saving money in operation and in keeping spare parts 
on hand for repairs and stating other benefits, yet by doing 
this one will only know by hearsay what are the best makes 
of machines. Then, if a mistake is made in selecting the 
first machine, it will be duplicated in buying additional 
ones. At times new types and makes of machines should 
be tried out, and these things prevent uniformity being 
established and maintained. This is the case to-day with 
contractors adopting automobile trucks. Many a con- 

* This subject has been dealt with at some length from the manufacturer's 
standpoint in a paper before the American Society of Mechanical Engineers 
by Mr. H. L. Gantt. 



FUNDAMENTALS IN CHOOSING PLANT 49 

tractor is trying out several makes of machines so as to 
adopt some one make. Results are unsatisfactory during 
the life of these cars. As it is with trucks, so it is bound to 
be with many other classes of machines. 

Plant Knowledge 

In selecting machinery for construction work the con- 
tractor must have adequate plant knowledge. This term 
plant knowledge must be construed in its broadest sense. 
Only a part of such knowledge can be stored in a man's 
head, for so many details must enter into it that no one 
can memorize it all. 

Plant knowledge must cover data as to all makes and 
types, for if a man is ignorant of the existence of any particu- 
lar type or make of machinery, he is not able to consider 
these in making his selection. There is always the possi- 
bility that such machines may be the best adapted and 
most economical for the construction under consideration. 
Yet many successful contractors have meager knowledge of 
a large number of manufacturers' products and are proud to 
make such a boast. 

To illustrate. A few years ago the author was awaiting 
his turn to talk with a contractor who was going over with 
a salesman the matter of selecting some machine for his 
work. The contractor said: ^^We are just beginning to 
consider installing this plant, and we have used your 
machines. I mean to use them on this job. You can't tell 
me anything about them, but rest easy, for we will buy 
from you when the timfe comes." 

This satisfied the salesman and he withdrew. The next 
man to talk with the contractor was another salesman, 
representing a company making machines for the same pur- 
pose, yet of an entirely different type. Both makes of 
machines had been on the market about the same length 
of time and were well advertised. 

As soon as the new salesman stated his business the con- 
tractor exclaimed in a very emphatic and haughty tone of 



50 MANAGEMENT APPLIED TO CONSTRUCTION 

voice: ''No use talking to me. I never heard of your 
machine, don't care to now, and I have already decided on 
the machine I am going to use. I have not time to talk 
to you." The salesman left. 

The author knew both machines, and the one turned 
down was the most economical in operation and capable of 
greater output than the one selected in this offhand manner. 
There happened to be in this contractor's office another con- 
tractor having similar work to do on another section of the 
same extensive undertaking. He, too, had been using the 
same machines that the other one had decided to install, 
but hearing the second salesman turned down in a loud tone 
of voice, he followed him out of the office, talked with him 
regarding his machine, got a catalogue, investigated the 
matter and installed the second type, much to his delight 
when increased profits were earned. The first contractor 
showed ignorance and pride in his lack of plant knowledge, 
the second was a man anxious to add to his knowledge and 
profit by it. 

Plant knowledge likewise consists of knowing the method 
of operating all the various types of machinery meant for 
the same kind of construction, and the range of work that 
each will cover. In many cases a machine that will do a 
wide range of work is a recommendation; in some cases this 
may be an objection, as the work may be of such a peculiar 
nature that a special machine should be made. 

This is the case in mixing bituminous materials for street 
and road work. A mixer meant for concrete may be used 
for the bituminous materials by adding heating apparatus, 
but it will not give as satisfactory or as economical results 
as one designed especially for that class of work. 

The speed of a machine is as important as its design and 
operation. The capacity is dependent upon its size and the 
speed. Two machines of the same make and the same size, 
geared to different speeds, will give different outputs if 
operated in the same manner, yet few contractors go into 
this feature of machines. 

Another important element of plant knowledge is the wear 



FUNDAMENTALS IN CHOOSING PLANT 51 

and upkeep of all makes of machines. This is dependent 
upon the design, the quality of the materials, and the skill and 
care of manufacturing. A machine that has continual 
breakdowns is not only expensive in repairs but is the cause 
of delays and of the necessity for shifting men from one part 
of a job to another to keep them employed. Such break- 
downs may interfere with the entire sequence of the work as 
planned, and break up of the essential feature of modern 
management. There are few machines that will not break 
down at times, especially when they become old, yet there is 
the greatest difference in this respect in various makes of 
machines. 

The design of a machine and also of its parts has much to 
do with its breakdowns. A poor design means undue strain 
on certain parts, with resultant trouble. New types of 
machines, until they are tried out, are often weak in this 
respect, but a reliable manufacturer is quick to remedy 
such details. The advantage some makes of machines have 
over others is in the simplicity of design. Such equipment 
is often termed ''fool proof," but a more intricate design 
may likewise be called the same, if all the parts are well 
designed. At times a simple machine may have a limited 
range of work due to its design. 

No matter how well a machine is designed, if good mate- 
rials are not used and skill and care are not employed in 
making the parts and assembling them, frequent break- 
downs are bound to occur. 

Next to design, this is the important feature of manufac- 
turing. The reputation of a manufacturer stands behind 
these things. In some important installations of plant it is 
possible to have test bars taken to see the quality of the 
metal. Other tests may be made for wood and other 
materials, and by inspection the skill and workmanship 
may be tested, but in most cases the purchaser is dependent 
upon the reputation of the manufacturer. The fact that a 
machine is guaranteed is a small item. It only means the 
replacing of a spare part and the saving of a few cents as 
compared to the cost of an expensive delay and possible 



52 MANAGEMENT APPLIED TO CONSTRUCTION 

tying up of the job. A reputable manufacturer will make 
good any defective part as quickly without a guarantee as 
with one. 

Plant knowledge must include familiarity with the cost of 
machinery. Naturally everyone is anxious to save money, 
so that a low price is a consideration in buying; but good 
quality and the best of skill and workmanship cannot com- 
pete in price with poor materials and cheap unskilled 
labor. The purchaser must possess knowledge of manu- 
facturers as well as of their products in order to discriminate 
in prices. A hundred dollars saved on the purchase price of 
a machine, if it has cheap materials in it and is manufac- 
tured carelessly, may mean a thousand dollars lost on an 
important job. Quality must be considered in connection 
with the price. 

This is true likewise of supplies and materials used in 
construction. A contractor's reputation is at stake in 
these matters and he is like a manufacturer placing a poor 
machine on the market if he attempts to use materials and 
supplies of poor quality. A contractor's structure must be 
of the best if he is to give satisfaction to his clients. 

Then, too, the best machine can be ruined by using 
cheap supplies. Poor lubricants are a hindrance rather 
than a help to machinery. Poor quality coal is hard on 
the fire box and boiler and does not give steam at an 
economical cost. So it is with other supplies. 

The details of operation and service of machines of 
various makes and types must be known if the best and 
most economical types are to be selected. This knowledge 
can be obtained only by close study of cost records — not 
only those by the contractor himself, but also all other 
records that can be obtained. 

Cost Records and Their Availability 

Cost records and analyses are necessary to the most 
efficient management, and in fact these are essentials of 
modern management on construction work. Nothing is 



FUNDAMENTALS IN CHOOSING PLANT 53 

left to impressions nor to guesses. All methods and sys- 
tems are based upon actual data obtained from work done. 
It is easy to sit down and count up the cost of service of 
a machine and the cost of materials and place a theoretical 
output of the machine and its crew. By making an allow- 
ance for plant and other overhead charges it is possible to 
show a low unit cost on work and a handsome profit. But 
it becomes a difficult task to live up to such figures and make 
the calculated profit. Any inexperienced engineering gradu- 
ate can do the first; it takes an experienced contractor to 
do the second task. 

Such estimates and cost data are of little value. Con- 
tracting cannot be successfully carried on upon visionary 
statements and calculations. Success can be achieved 
only when knowledge is based on hard practical facts and 
results. A man cannot expect to make himself a con- 
tractor by purchasing a book upon contracting and one on 
cost data. Both may aid him but he must possess much 
actual experience and practice before these things will 
really help him. 

Some men have made this mistake, but generally at such 
an age in life as to retrieve the loss and profit by it. Many 
contractors, however, do not profit from the experience of 
others, nor from information that they can glean from 
technical journals and books. It is the little details that 
may mean the difference between success and failure. 
The success in operating a machine may be dependent upon 
some small detail of service. 

Then, besides the details, there is often the chance of 
learning from others the great essential of new machines 
and new methods or the adaptation of an old machine to 
new work. It is these things that every contractor should 
be on the alert to learn from others for they become capital 
to him without the necessity of his carrying on the experi- 
ments himself. 

A man purchasing a steam shovel for the first time, 
today has the advantage of fifty years of experimental 
work and experience of the manufacturers and users. Some 



54 MANAGEMENT APPLIED TO CONSTRUCTION 

of this is thrust upon him; the rest can be gleaned by study 
and keeping his eyes and ears open. 

Cost records, to be of value in selecting and operating 
machines, must be analyzed. They must be reduced to 
working units so as to make comparison easy. This must 
be done daily. Analysis of costs has, except in a few cases, 
but little value when made weekly, monthly, or annually, 
or at the completion of a job. These analyzed costs give 
plant knowledge, for if costs are proved high, new machines 
and new methods will be tried and changes will be made 
until the costs become reasonable. 

Analyzed costs not only affect the selection of machines, 
but also the accessories that should be used to serve it. 
Thus with a concrete mixer, the cost records should serve 
as a basis for decision upon the plant needed to serve the 
raw materials to the mixer and that needed to handle the 
concrete from the mixer to the forms. Thus it may be 
cheaper to elevate the concrete to a height of fifty feet in 
order to chute it a distance several times greater, than to 
haul the concrete the horizontal distance. 

It is also this analysis of costs that results in the sub- 
stitution of machines for hand methods. For example, 
if it is found that concrete is being mixed and placed for 
$1.00 per cubic yard, and the mixing and placing is costing 
but 30 cents, while the serving the mixer by hand is costing 
70 cents, it at once becomes apparent that some handling 
machine can be installed that may cut the cost of service 
in half or even make a greater saving. 

Plant knowledge based upon analyzed costs also tends 
to prevent the use of makeshift devices for machines de- 
signed and manufactured especially for the purpose. This 
may mean not only money saved, but also time saved in 
completing a job. 

Special Machines 

If, when an unusually large job is to be undertaken, or 
one having some special feature, the contractor has broad 
plant knowledge, he and his engineer know without experi- 



FUNDAMENTALS IN CHOOSING PLANT 55 

meriting that there is nothing on the market that is espe- 
cially adapted for the work in question to do it at a low cost. 
Thus they can at once take up the subject with some expert 
manufacturer, to design a special machine for the work. 
The contractor's knowledge of operating machines coupled 
with the manufacturer's knowledge of designing and build- 
ing will produce a machine that will in no wise be an experi- 
ment, but one that will be a success from the start. 

In this connection, due to a lack of plant knowledge on 
the part of contractors, some are continually asking for 
a special design of machine for their work, and insisting 
upon having it, when a regular machine would cost less 
and operate more economically. In many cases this hap- 
pens before a contractor has ever used such a machine. 
Every reliable manufacturer is willing to build special 
machines, or to make changes in his regular ones, but he 
has learned from experience which are the best types or 
sizes for different classes of work. 

When a special machine is needed money is saved by the 
contractor co-operating with a manufacturer in designing 
it. The latter can substitute many stock parts that will 
answer the purpose and be cheaper than making drawings 
and new patterns for designs that do not possess special 
merit. 

One common mistake made in operating plant is the 
use of machines meant for heavy work or for large ca- 
pacity, for small things or where a smaller capacity is 
needed. If only 10 cubic yards of concrete are needed in 
a day money is wasted in using a 1-yard mixer. A small 
mixer should be used which needs only one or two men 
to serve it. 

Recently a contractor operating a crushed stone quarry 
on the outskirts of a large city sent a 5-ton motor truck 
to carry a few small pieces of machinery into the city and 
perform several errands. Questioning brought out the fact 
that nearly every day this service was performed — some- 
times twice a day. This being the case, it would have been 
economical to have had a small truck of 1-ton or less 



56 MANAGEMENT APPLIED TO CONSTRUCTION 

capacity, and to have used it instead of the large truck, 
or even to have used a horse and dehvery wagon. Even if 
the larger truck was not needed for hauling crushed stone, 
it would have been cheaper to use the smaller truck, for 
neither would be using up money when idle. As a rule, 
this service was performed at the cost of delivering a load 
or two of crushed stone. There may be occasions when it 
would be cheaper to use the larger machine, but these are 
exceptions. 

Plant is used for two purposes, to do fast work and do it 
at the lowest possible cost. These results can only be 
obtained by using the machines best suited for the work, 
and then selection and economical operation can only be 
based upon adequate plant knowledge. 



CHAPTER VI 

THE APPLICATION OF MOTION AND TIME 
STUDIES 

Although time and motion studies are essential to scien- 
tific management, neither can be termed a basic principle 
of management as they deal with details rather than with 
the principles of handling men and machines. 

Time studies are those made of the work of men and 
machines by using a watch. A stop watch is preferred in 
most cases. Such studies give some beneficial results when 
made during short periods of time — a minute, a quarter 
of an hour or an hour. Studies covering longer periods 
of time, such as several hours, a day or even a week, 
give results that are more efficient. Time studies of 
various kinds of work are often made before motion 
studies, and sometimes to the exclusion of the latter, when, 
to obtain the best results, motion studies should have been 
made first. 

Motion Studies 

Motion studies can be made of machines to better the 
designs and increase the output, but for construction work 
motion studies are generally confined to the operations of 
men. The object of motion studies is to save time and 
ehminate all useless and waste motions. In reality the 
two studies should go together when the work of men alone 
is being considered. The need of making motion studies 
first is shown by an actual example. 

An efficiency engineer spent several weeks in timing the 
work of a gang of bricklayers. The result of his studies 
shown to the contractor, who was formerly a bricklayer, 

57 



58 MANAGEMENT APPLIED TO CONSTRUCTION 

was deemed to be useless by the latter, for he knew from 
personal experience that many of the motions of his brick- 
layers were wasteful and some even useless. Accordingly 
he had a series of motion studies made, and after eliminating 
a number of the ordinary bricklayer's motions, he was ready 
to have a series of time studies made of the proper motions, 
as a basis of obtaining more rapid and economical work. 

Motion studies are more difficult to make than time 
studies, and if experimental work is to be done in order to 
find out what motions should be ehminated, and how others 
should be changed, it is hardly possible to prevent the 
workmen from knowing that their every movement is 
being watched. It is possible, in many cases, to make 
time studies without letting the men know they are being 
watched. The author has had time studies and records 
of men's work made over periods lasting several months 
without the gang knowdng it. Most workmen dislike to 
be w^atched and timed and such practices have caused 
strikes. For this reason these things should be done with 
great care and judgment. 

In some cases motion studies can be made by selecting 
a few intelligent and trustworthy employes, and explaining 
to them the value of the studies to be made. The motion 
studies can then be made in private. This may answer 
the purpose for some kinds of work, but for most of the 
various classes of w^ork, the most satisfactory results can 
be obtained only by studying w^ork actually being per- 
formed from day to day. If the making of motion studies 
in the open is to break up an organization and cause expen- 
sive strikes, such studies had better not be made, except 
where they can be made privately. However, if a con- 
tractor is willing to share the extra profits with his em- 
ployes he will probably gain the co-operation of his men, 
which will make his task easier. Their interest will be 
aroused and they will support him in bringing about more 
satisfactory results. 

Motion studies embrace, not only the work of individual 
workmen, but frequently that of two and sometimes an 



APPLICATION OF MOTION AND TIME STUDIES 59 

entire crew, depending upon the character of the work and 
whether it is performed in whole or in part by one or more 
men. 

Unless a contractor is able to get the results of motion 
studies made by other contractors and use some or all of 
them, it is necessary for him to make studies of all the 
various kinds of work done by his employes. Unfortu- 
nately but few of those who have had motion studies made, 
have made pubUc such records and data. 

Motion studies can in most cases be recorded in chart 
or diagram form, or be written as a description. This last 
method is not so easily grasped as the former, nor can it be 
used for study so easily. Photographs are a great aid in 
making motion studies and by them both the right and 
wrong motions can be shown to the workmen. 

As the main object of such studies is to simplify all 
work and to increase the output of each man, it is neces- 
sary to study the motions made in doing all classes of work, 
even to making studies of picking, shoveling, and the hand- 
ling and placing of brick, concrete, etc. Such studies must 
be made for every purpose for which a tool is used. For 
instance, a man should use one set of motions for casting 
dirt but he should go through a different set for cutting 
down dirt, or the loading of a wagon. These motions are 
all different from those necessary when using a shovel for 
mixing concrete on a board. 

Many contractors and their general managers who have 
not made motion studies are skeptical as to the need of 
them, and of results to be obtained. They feel that the 
entire matter is entirely too academic. They do not 
realize the value of motion studies until they have made 
them and saved moiiey by applying them. 

A short time ago the author was being shown through the 
addressing room of a publishing house. In a very large 
room a number of girls were addressing envelopes or small 
circulars. No attempt had been made to systematize this 
work as to the motions of the operators or writers, nor to 
make the arrangements convenient for them. In order 



60 MANAGEMENT APPLIED TO CONSTRUCTION 

to get a large number of the girls in the room, long, wide 
desks, at which half dozen or more girls could write had 
been placed. These desks prevented quick work. The 
girls were reaching from six inches to eighteen inches to dip 
their pens into the ink. Likewise each girl placed the 
pieces to be addressed any place she wished. In some cases 
this made the distance to be reached a foot or two. Some 
of the girls made a useless motion to place the addressed 
article out of the way. These girls, accustomed to the 
work, were addressing a large number of pieces in a day, 
but a study of their motions, the supplying of different 
desks and other paraphernalia would have made the work 
easier and materially increased the output. 

Some years ago the author was in charge of from 50 to 
100 men doing similar work. By a close study of the 
motions necessary to do the addressing and making cer- 
tain changes in the desks used, it was possible to about 
double the daily work of each writer. This effected a 
decided saving, not only in the cost of addressing, but also 
in cutting down the number of employes and the amount 
of office room devoted to this work. 

The same principles can be carried into construction and 
the results obtained will be gratifying to those who try 
them. 

After making motion studies of the operations of men, 
time studies of both men and machines can be made. In 
some cases the studies are a combination of both man and 
machine work, while at other times each must be timed 
separately. Time studies are of use for two purposes: 
first, to decide upon the proper and best methods of doing 
work; second, to obtain a standard of work to be done. 

Time Studies 

Time records will show a great variety of results. Ex- 
ceedingly favorable conditions exist upon some occasions, 
allowing rapid work to be done and obtaining large outputs. 
Then again, work will be held up by adverse conditions and 



APPLICATION OF MOTION AND TIME STUDIES 61 

time records will show up accordingly. These facts alone 
show the need of time records to prevent the occurrence of 
adverse conditions whenever possible. 

Some years ago the author made some time studies of 
loading two-horse wheel scrapers on railroad construction. 
He found, first of all, that when the scrapers were being 
loaded rapidly in well plowed clay ground the scrapers were 
not filled by the teams, except by traveling a longer distance 
than necessary. Thus the time of loading was unnecessarily 
long or the load was too small. Three horses were being 
used in the snatch team, as was customary in that section 
of the country. 

This led to the conclusion that with more power, the 
scraper could be given a larger load and loaded quicker. It 
was found that the plow was loosening about 8 inches of 
material in the main part of the furrow. The plow was 
accordingly set to loosen 10 inches of material and four 
horses were put into the snatch team. It was then found 
that the pan could be filled in very little more distance than 
twice the length of the pan. The snatch team, which at 
first was hitched four abreast was stopped as soon as the 
scraper was loaded and remained standing where they were. 
The scraper team was turned abruptly to one side, pulling 
the load out of the row. Then as a second scraper team 
pulled up into the row to be loaded, the snatch team was 
backed a few steps to be hitched to the scraper before the 
pan entered the earth, so as to go full force into the dirt and 
take on a heaping load. 

This method, suggested by time studies, reduced the time 
of loading and increased the load taken by each scraper. 
Yet a continuation of the time studies showed two extreme 
conditions. At the end of each scraper row the plow, both 
in starting and finishing the furrow, did not go as deep as in 
the rest of the row, and as teams would have to travel over 
this loosened dirt it was not considered good policy to leave 
it there. At the same time the studies showed that the 
scrapers, for a distance varying from 25 to 50 feet on each 
end of the rows, were loaded much slower, and also with a 



62 MANAGEMENT APPLIED TO CONSTRUCTION 

smaller load. A great deal of time was spent in trying to 
improve the plowing, but this was not found to give the 
results desired, although some improvements were made in 
this line. 

Then another expedient was tried, which was successful, 
as the continued time studies showed. The four-horse 
snatch team was changed from being hitched abreast, to 
being hitched in two teams, one in front of the other. By 
this arrangement little if any difference was noticed in their 
pulling power. Two men were still used to handle the 
snatch team. It had also been found expedient with the 
deep plowing to have two men hold and load the scrapers. 
When the dirt was deep in the middle of the rows the four- 
horse snatch team was used in loading the scrapers, but as 
soon as the end of the row was approached, one of the 
loaders and two of the four horses on the snatch team were 
sent to start a new row, while the other loader and the remain- 
ing two horses finished out the row. By the time this was 
done, the new row was well started and both teams operated 
together. The results thus obtained were found to be 
satisfactory as two lightly loaded scrapers were taken out 
in the same time in which formerly only one had gone out. 
Then, too, the run of the scrapers was not interfered with 
as much as formerly, for the foreman was able to direct the 
scrapers to the new row without waiting for the old row to 
be cleaned up to the end. Time studies on this work 
increased the output of the scrapers over 20 per cent, 
adding but little to the daily cost of the crew, and reducing 
the unit cost of the excavation nearly two cents per yard. 

This shows the necessity of taking the maximum output, 
and the most favorable time records as the standard to 
work to, rather than ones that can be obtained ordinarily. 
Many contractors make a favorable run on their work, and 
feel certain that this cannot be duplicated for a long time 
until conditions once more become ideal. This is wrong. 
A time study made of this favorable run enables the con- 
tractor to analyze the work and the condition surrounding 
it, Then time studies of the same work under other con- 



APPLICATION OF MOTION AND TIME STUDIES 63 

ditions will permit analysis to be made so that many 
changes can be made, adverse conditions overcome and the 
work improved to raise the standard and make record runs 
possible on many days when the work would ordinarily 
drag. 

Cost records must not be confused with time records and 
the keeping of one does not do away with the other. Cost 
records should be kept continually but time records need 
only be kept from time to time, first as a basis of analyzing 
cost records and second as a means of reducing costs and 
placing the work on a more economical basis. Thus time 
records are supplemental to cost records. 

Construction work time studies must be made more 
frequently than in carrying on a manufacturing enterprise 
for in construction the same operations are not carried on 
day after day, men in the crews are continually changing, 
and many details are radically different from manufacturing. 
Thus one set of studies made throughout a manufacturing 
plant may be used for years as the standard for that plant, 
while in construction certain kinds of time studies may have 
to be made for each job and sometimes several times on a 
single contract. There are some phases of construction on 
which the work may be considered standard, and studies 
once made become a basis for standardizing that phase 
of the work. 

This was the case with the studies referred to regarding 
scraper work. It is the same with men mixing concrete on a 
board by hand, or shoveling dirt into a dump wagon of the 
drop bottom type without sideboards. These and similar 
things should not vary much from job to job or in different 
sections of the country. This, however, is not always the 
case in machine operation as is evidenced by a handbook 
published and sold by one of the companies manufacturing 
steam shovels,* showing a wide variation in time records 
of the same types and sizes of shovels on different kinds of 
work. 

This handbook is an excellent reference book for every 

* The Bucyrus Company, of Milwaukee, Wis. 



64 MANAGEMENT APPLIED TO CONSTR UCTION 

contractor who operates steam shovels although the book 
would be of more value if motion studies had first been 
made, and conditions bettered to show more nearly what 
could have been obtained with the shovels operating under 
more economical conditions. 

However, with these records, and time studies made by a 
contractor of his own shovels, being served in different 
ways, many deductions could be made and the methods of 
operating shovels improved. 

Both time and motion studies can be made by young men 
with but little training, but these same men cannot analyze 
them and use them as a basis of improving work, until 
they have gained experience in construction. Allowing the 
men who make the studies to assist the more experienced 
men to make deductions and changes and put the knowl- 
edge so gained into practice will enable these recorders to 
handle some of the details themselves and ultimately to 
handle this department. But with these things, as with 
cost data, it takes men of experience and sound judgment to 
use such records. 

Motion and Time Studies Applied to Shovel Work 

Man has used some form of a. shovel since prehistoric 
times. Digging into the earth for many purposes has 
always been one of the vocations of man. The develop- 
ment of the shovel has been slow and gradual, while the hand- 
ling of the tool has been along the line of precedent, little 
thought being given to its use. The shoveler has always 
been looked down on, his work being more a matter of 
physical strength and endurance than one for study and 
scientific investigation. 

Today, however, the cost of shovel work is so tremendous 
(running into many millions of dollars annually) that the 
kinds of shovels to use and the methods of handling them 
merit careful study and investigation. For about 20 
years the author has followed this subject closely, making 
many studies of this class of work, keeping records, timing 



APPLICATION OF MOTION AND TIME STUDIES 65 

men at work and following the investigations of others. As 
a result, it has been found that it is an extremely easy 
matter to improve the methods followed by most contrac- 
tors, and the improvement is so pronounced that it is 
readily possible to cut down operating costs from 10 to 50 
per cent. This would mean the saving of many thousands 
of dollars yearly and contractors can no longer afford to 
ignore such facts. It is incumbent upon them to eliminate 
such wastes. Some of this work must be done by experts, 
but much of it can be done by contractors and their general 
managers without assistance, as the general principles are 
simple, and a great part of the work is only to furnish the 
proper tools. 

All shoveling tools can be divided into two classes, 
according to the length of the handles: the long-handled 
shovel, with a straight' handle, and the short-handled tool, 
with a hand grip on the end shaped like the letter ^^D,'^ 
and for this reason sometimes called 'Hhe D-handle.'^ 
For ordinary purposes the hand grip is made of wood, 
but an iron ^^D" is sometimes used, meant to make 
the handle stronger and to allow dirt or gravel to be 
tamped with the handle under ties or sills. This is 
called a tamping shovel and is employed in railroad con- 
struction and maintenance. These iron ^^D''s are also 
used to repair the handles of the ordinary shovels, when the 
wooden ^'D" becomes broken. A wooden ^^D" should 
never be used for tamping, as this, even in earth, will split 
the handle — and a handle once split retards a man's work. 

In the United States and Canada the short-handled 
shovel is in almost universal use. Few contractors use 
long-handled shovels, for they are considered a lazy man's 
tool. The author is informed that in Continental Europe 
the preference is given to the long-handled shovel. Some 
Itahan contractors use long-handled shovels exclusively, 
even in the United States. Photographs of European 
soldiers digging trenches during the World's war show that 
most of the men used three-quarter length or long-handled 
shovels. 

6 



66 MANAGEMENT APPLIED TO CONSTRUCTION 

It is but right to say that each shovel has its place, 
but the long-handled shovel should be preferred for most 
work, especially for excavation, in loading cars, carts, 
wagons and in any work in which the material must be 
elevated, such as digging trenches and pits. The hardest 
work a man does, measured in foot pounds, is in elevating a 
load. Thus it stands to reason that if this work is done by 
means of a lever the longer the lever, up to the size and 
weight that a man can readily handle, the easier the work. 
The easier the task, the quicker the work can be done and 
the larger the amount that can be done in a given time. 
The operation of a shovel is not on the principle of a true 
lever but resembles it for most purposes. 

Long-handled Shovels 

In addition to this, actual practice has demonstrated 
that a man can shovel more earth with a long-handled 
shovel than with a short one, except under certain condi- 
tions where space is limited and short-handled shovels are 
necessary. For cutting down piles of dirt, for unloading 
flat cars and for other purposes where the shovel is used 
with a downward, instead of a sideways motion, the short- 
handled shovel is the ideal tool. For all side casting 
and loading the long-handled shovel should be used, unless 
men are placed so close together that the length of the 
handle interferes with another man. In loading a one- 
horse dump cart, the author has loaded a cart with three 
men using long-handled shovels in a few seconds less time 
than four men could load the same cart with short-handled 
shovels. This shows a saving in loading of more than 25 
per cent. 

The same is true of wagons and other vehicles. Another 
advantage in loading wagons with long-handled shovels 
is that men can be placed farther from the wagon than with 
short-handled tools. Thus more men can be placed around 
the wagon to load it, the work is done quicker, and team 



APPLICATION OF MOTION AND TIME STUDIES 67 

time is saved. As each man will handle more dirt with the 
long-handled shovel, the cost of loading per cubic yard 
will be less, as well as the cost of transportation. These 
two costs will likewise reduce the other costs, as can be 
illustrated by the following example : 

Some years ago the author was excavating cellars by 
hand, loading dirt into dump carts. From his cost records 
he concluded that one man picking was not needed. There- 
fore this man was changed to shoveling. This reduced the 
cost of picking only 2 mills or one-fifth of a cent per cubic 
yard, but the man put on the shovel loaded 14 cubic yards, 
thus reducing the loading cost, the transportation cost, the 
cost of dumping and the foreman cost, making a total re- 
duction per cubic yard of 2J^ cents and about doubling the 
profit on the job. This is a striking example of a slight 
change effecting a large saving per day amounting to 
hundreds of dollars in a year. Waste was eliminated as 
the same number of men were employed at the same 
wages. 

This is the principle of saving by using long-handled 
shovels. For trench excavation, long-handled shovels 
should be used except in confined places — around man- 
holes, pipes and other obstructions. In opening trenches 
some contractors use short-handled shovels until they get 
to a depth of about 3 feet, then change to long-handled 
tools. This is a mistake. Starting the trench with long- 
handled shovels, the workman will shovel more dirt and 
with the same effort will cast the dirt from 2 to 3 feet farther 
from the trench, thus allowing the pile of excavated mate- 
rial to be made much larger without so much rehandling 
as will have to be done with short-handled shovels. The 
saving effected in this manner in any trench work is 
considerable. In excavating deep trenches, the height of 
each lift can be considerably increased with long-handled 
shovels. This also means less rehandling and fewer men 
employed for that work, allowing a gang of a given size 
to excavate a greater length of trench in a day. 



68 MANAGEMENT APPLIED TO CONSTRUCTION 

The Shapes of Shovels 

Next to the length of handle, the shape of the shovel 
is of importance. It is evident that various classes of 
materials need different shaped shovels. Though some 
contractors give attention to this, the majority of them do 
not even furnish scoop shovels to handle coal. Each class 
of material, such as earth, rock, sand cinders, coal, snow, 
and many others, call for a different shaped shovel, while 
such materials as crushed stone are more easily handled 
with forks, which can be classed as shovels. 

The first great distinction in shapes is for digging. The 
ordinary shovel is not meant for digging, but simply for 
picking up loosened materials. A special shape is given a 
shovel meant for digging, such shovel being termed a 
spade. The blade is made heavier and much flatter in 
shape, and is bound on its upper edge by a heavy rein- 
forcing piece of metal. This is to strengthen the blade 
and give sufficient foot rest to force the spade into the 
ground. These tools are made both with long and short 
handles. 

Both loam and clay can be loosened and shoveled with 
a spade. The more plastic the clay, up to a point that 
will allow the clay to break away from the mass, the larger 
the load that can be handled at one time. Damp soils 
and clays spade easily. Exceedingly plastic clays — those 
that are tenacious and do not break away readily from a 
mass when dug with picks or mattocks — can be cut into 
large chunks like adobe bricks with a spade and handled 
cheaper than with a shovel, as the flat pieces lie better 
on the blade of the spade. 

Spades are not used much by contractors and are not 
often needed, but there are certain kinds of soils that can 
be excavated cheaper with a spacje than with picks and 
shovels. This is especially true of trench work. Upon one 
occasion the author had a small contract for laying sewer 
pipe. He had in his employ eight men, three being kept 
busy loosening the clay with picks and five shoveling. The 



APPLICATION OF MOTION AND TIME STUDIES 69 

clay was fairly stiff but free from stones. After a few days 
long-handled spades were purchased, the picking was 
stopped and each of the eight men dug and threw out of 
the trench as much earth as each of the five had done before. 
A saving in trench excavation of 373^^ per cent of the cost 
was effected. 

In casting up low railroad embankments from berm 
ditches, the author has saved much money by the use of 
spades. Every contractor should be on the lookout for 
favorable places where spades can be used for excavation. 
The diamond-pointed spade and the diamond-pointed 
shovel are used for breaking down coal and other materials. 
A spading fork with flat tynes is used for turfing and turning 
light soil. 

Sand does not need digging and a spade is not suited for 
loosening and shoveling it. Instead, a large, square- 
pointed shovel with slightly curved or turned edges, should 
be used, as the load lifted will be much larger. If the sand 
is moist (not saturated) more will stay on the shovel and 
thus the excavation is done cheaper. This is the case both 
with sand in its original bank or when placed in piles for 
concrete or other purposes. Any light and soft earth can 
be spaded with a well-made shovel. The tool should have 
a square point and be of such width as to carry an economic 
load. For this kind of work a shovel with a strap on the 
upper edge should be used. This gives a foot rest and 
allows the foot and leg to be used in digging, the shovel 
being held, instead of forced, by the hands and arms. 

In ordinary shoveling a man should not be allowed to 
place his foot on the shovel. It is a useless motion and only 
delays him. The only reason for using the foot is that the 
material is not properly loosened. If that is the case the 
foot digging should be stopped and a pick used. 

For very plastic, wet, heavy clays, a skeleton spade 
should be used. These tools are used extensively in the 
upper Mississippi valley for digging drainage trenches for 
placing under-ground tile drains. They consist of a cut- 
ting blade a few inches deep with ribs leading from the 



70 MANAGEMENT APPLIED TO CONSTRUCTION 

blade to the frame around the eye into which the wooden 
handle fits. Thus the tool is shaped like a spade, but in 
looks is Hke the skeleton of one. This prevents great suc- 
tion of the water on the blade, making it heavy for the 
operator handhng the tool. The spade is made in varying 
lengths to suit the depth of the trenches. There are a 
number of special shapes of spades or digging tools designed 
for special work of digging post holes and for ditching and 
drainage. Some of these are meant to be operated by 
several men. 

In using ordinary spades and shovels in wet soil or sand 
suction on the blades can be prevented by drilling several 
holes on each side of the handle. Such holes should be 
from 1 to 2 inches in diameter. 

For ordinary earth, a square-pointed shovel, rather flat, 
with turned edges, should be used. This shape is ideal 
either for wet or dry soils, or for light, flaky loam or clay 
that breaks up in lumps. The shovel must not be expected 
to do the work of a pick, and a man cannot get a good 
load on his shovel if the ground is not well loosened and 
plenty of the loose dirt kept in front of the shoveler. Upon 
one occasion, where shovelers were working with only a 
small amount of loosened dirt in front of them, it took an 
average of thirty shovel loads to fill a wheelbarrow. At 
the author's suggestion that more loosened dirt be kept 
before the men, and without mentioning the subject to the 
shovelers, a wheelbarrow was loaded with an average of 
twenty shovel loads and a decided saving was made without 
increasing the cost of picking. 

Height of Shoveling 

The height to which the shovel load is raised is an impor- 
tant item. Up to a certain height there is not a decided 
difference. For instance, a man can cast more dirt a reason- 
able horizontal distance than he can raise a reasonable verti- 
cal height. In raising earth up to about 30 inches, a foot or 
more in height does not make any decided difference in cost. 



APPLICATION OF MOTION AND TIME STUDIES 71 

but the next 2 feet in height will reduce the amount of earth 
handled by 10 per cent. Thus for 4J^-foot heights the cost 
of loading will be 10 per cent more than for 2}^ feet. The 
ordinary drop-bottom dump wagon without side boards is 
4 feet 8 inches high, and for efficient work this should be the 
hmit of height, for every 6 inches in height above this means 
a reduction of 10 per cent. 

A man trimming a scow, car or stock pile, where the 
material is not over 30 to 36 inches high, will make an aver- 
age of twenty shovel loads per minute. This may be partly 
casting and shoveling but not all the shovel loads will be 
raised to the top of the mass. 

In casting in average earth not exceeding a horizontal 
distance of 10 feet, a man will make an average of eighteen 
shovel loads. 

In loading wheelbarrows, dump-buckets, dump-carts 
without tail gates or low cars a man in average earth will 
make an average of fifteen shovel loads. The height of 
these will not exceed 30 to 33 inches. 

In loading dump wagons without side boards, slat bot- 
tom wagons or any car not exceeding a height of 4 feet 6 or 
8 inches, a man will handle thirteen shovel loads. To add 
6-inch side boards to these vehicles will mean to reduce the 
number of shovel loads to eleven. 

In loading the high rear end dump wagons used exten- 
sively in New York City, having a height of from 5 to 6 
feet, the average shovel loads handled by a man will be 
nine. To add 6-inch side boards will reduce the number 
to seven. 

In loading the rear end, 2-horse 4-wheeled dump carts 
used in Boston, Mass., with high side boards and tail 
gates reaching to a height of 7 feet a man will load but 
six shovelfuls per minute. All of these are records in 
good shovehng materials well loosened and for a period of 
one minute. Short-handled shovels were used. 

These records are not theoretical ones, but are the results 
of actual timing. They represent the work good shovelers 
can do and should be made to do if possible. On many 



72 MANAGEMENT APPLIED TO CONSTRUCTION 

jobs the number of shovelfuls is much smaller. This is 
due to inefficiency on the part of foremen and to a lack of 
knowledge on the part of the men. 

If long-handled shovels are employed the number in 
each case would be increased 10 per cent. The author 
has records for long-handled shovels for all but the last two 
cases, and bases his judgment for these upon the first 
named cases. 

Few contractors seem to know these facts or realize their 
importance. It can be seen from these records that if 
attention is given to the height of vehicles much money 
can be saved in shoveling. 

Shovel Shapes for Various Materials 

For earth mixed with rock or for rock broken into 
irregular sizes, as in a quarry or open rock cut, and for very 
heavy earth, a round-pointed shovel with a decided curl 
to the blade should be used. The pointed blade seems to 
be able to cut under the rock more easily, and the curl 
holds the load better, except where the rocks are 6 inches 
or more in size. When there is much of this size of stone 
and little or no earth or fine stuff, a flat stone fork should 
be used. It is possible to have both a fork and a shovel 
handy for each man to use. 

Flat stone forks, with the two outside tines raised above 
the rest, are better than shovels for handling stone, except 
to clean up a pile. A three-quarter length handle makes 
handling easy and the tines go into the pile or under it 
more easily than does the «olid blade of a shovel. How- 
ever, for some concrete work and for road construction in 
some states, engineers will not permit the handling of 
crushed stone with forks, as the smaller sizes are Hkely to 
fall through the fork, causing them to remain at the bottom 
of the pile. 

Thus for concrete and crushed stone shoveling a square- 
pointed shovel with the edges of the shovel turned up should 
be used for small sizes of crushed stone or run of the crusher, 



APPLICATION OF MOTION AND TIME STUDIES 73 

or for fine gravel, chert and similar materials. For the 
larger sizes of stone, a flat, round-pointed shovel with the 
sides turned up should be used. It is not proper to use the 
same shape of shovel for all grades of concrete. For 
shoveling stone on board platforms a square-pointed flat 
shovel should be used. 

For sand, especially if moist, a flat wide shovel with the 
edges curled should be used. It is nearly always possible 
to moisten sand for shoveUng. When this cannot be done 
and the sand is entirely free from loam and runs easily, 
a small size scoop shovel should be used. However, as 
the scoop is likely to weigh more than the flat square- 
pointed shovel, the latter should be used if it will carry 
an economical load. 

Iron and steel moulders use a light flat square-bladed 
shovel made especially for their use. It is either a strap 
shovel or a hollow back tool. 

A scoop shovel should be used for cement. Inasmuch 
as cement is now being handled in bulk and also some of 
the small concrete mixers are being fed with cement by 
shovels, the subject of shoveling cement is of importance. 
A flat shovel will lose part of its load and the least 
breeze will blow some of the cement away. In shovel- 
ing cement two points must be kept in mind: the 
economy of the load handled, and the prevention of the 
waste of cement. 

Cinders and ashes should likewise be handled by scoops. 
The flat shovel cannot carry an economical load. 

Coal should be shoveled with a scoop, but as different 
grades of coal are used by contractors, it is necessary to 
get different sized scoops in order to handle an economical 
load. Miners in the south use a broad flat shovel for coal. 
It is seldom that more than one or two different kinds of 
coal are used on the same job, so this is not an expensive 
proposition. When coal is being shoveled from a car or a 
bin, from on top, a breaking-down scoop should be used in 
one corner until the bottom is reached. Then the regular 
shovel should be brought into play. A breaking down 



74 MANAGEMENT APPLIED TO CONSTRUCTION 

scoop has a long sharp point and is made round and not so 
flat as the ordinary scoop. 

Only a few contractors use coke. This should be handled 
with a fork, unless the coke is broken, when a shovel 
similar for handling rice coal should be used. 

For handling street sweepings a large scoop with a broad 
mouth should be used so that the last of the pile can be 
swept onto the blade with a broom. 

For snow a light-weight, broad, flat shovel is best. The 
edges should not be turned much, otherwise the snow will 
break off from the pile at the edges. If the edge is kept low 
the snow will stick out over the blade on each side, giving 
an increased load. For piling snow, a Toy street scraper 
is much more efficient than a shovel as it will gather up a 
large mass of snow and push it into a pile. A wooden 
scraper can be used by a man in a manner similar to the 
Toy. A precaution in using these scrapers is not to have 
the piles too far apart, otherwise the men will walk too far 
and lose part of their load. In a street of ordinary width 
scrapers can be used to push a fairly heavy fall of snow into 
two windrows, and other men can put the snow into piles 
with shovels if this is necessary. For throwing snow into 
sewer manholes these scrapers are superior to the shovel, 
as all that does not enter the hole when the vehicle is 
dumped can be quickly pushed into the opening with the 
scraper. 

Snow sticking to a shovel or scraper can be prevented by 
dipping the tool in water. In exceedingly cold weather this 
cannot be done as the water will freeze. Another expedient 
is to wax the shovel. A small charcoal or gasoline heater 
will quickly take the chill off the steel blade so that a little 
wax can be rubbed on the inside, causing the snow to slip off. 
For shoveling ice a regular ice scoop with holes bored 
through the blade should be used. These holes are a great 
aid in preventing the freezing and caking of the ice on the 
blade. 

For placing sand, grit, quarry dust or pea stone on a 
bituminous road a square-pointed flat shovel should be 



APPLICATION OF MOTION AND TIME STUDIES 75 

used. The load carried in this case is not so important as is 
the even distribution of the material on the tar or asphalt. 
The load must not be thrown off the end of the shovel, but 
over the side giving the shovel a motion forward and side- 
ways at the same time. To throw the material over the 
end of the shovel means to cast it into ridges or httle 
mounds, not distributing it evenly over the surface. Men 
must be trained for this work, which is becoming very com- 
mon. The material must be thrown only onto the strip of 
bitumen. To throw it across it and onto the road surface 
where the bitumen has not been placed means to waste it 
and, worse still, to dirty the ground surface so that the 
bitumen may not stick, but will ball up to some extent. 

Very fine gravel should be handled with a scoop ; coarse 
gravel should be handled with the same shaped shovel as is 
used for crushed stone. 

Bituminous road materials, especially those hot mixed, 
should be handled with close-tined forks. A shovel fouls 
itself quickly with the hot mixture, while a fork does not do 
so to the same extent. A shovel should be used to scrape 
out the wagon or truck if this becomes necessary. A more 
economical method of spreading and handling the hot stuff 
is to spread it out as much as possible in dumping the 
vehicle and then use rakes to spread it over the street or 
road. This is done with greater ease, and only a small 
amount of it may need shoveling. Even cold mixed bitu- 
minous materials are handled better with a fork. 

For handhng broken sod or turf a spading fork is better 
than a shovel, unless it is desired to move the dirt or soil 
with the sod. This is seldom the case, for as a rule it is 
desired to separate the sod from the soil as much as possible. 
A fork not only picks up the sod better, but assists in remov- 
ing the dirt, as the fork can be shaken easily and the dirt will 
fall through the tines. 

Manure should be handled with a fork, except when it has 
much sawdust or hght shavings in it. Then a shovel simi- 
lar to that employed for handling snow should be used. 
The manure fork is much lighter than those used for other 



76 MANAGEMENT APPLIED TO CONSTRUCTION 

purposes. For piling manure or taking it from a pile, 
a heavy manure hook should be used, this being similar 
to but heavier than a potato digger. 

For handling sawdust a scoop shovel should be used, 
which is a light weight scoop of large capacity. 

A similar scoop is also employed for shoveling grain. 
Both of these scoops have hollow backs to make them 
lighter. 

For shoveling dirt from deep holes a round-pointed short- 
blade shovel with a specially long handle is used. For 
cleaning out the bottom of such holes a spoon-shaped 
shovel is used. These spoons cannot be used for digging as 
the other shovels are. Such tools are called telegraph 
shovels and spoons, as they are used extensively to dig holes 
for telegraph poles. 

Size of Shovels 

The third factor governing the selection of a shovel for 
any class of work is the size of the blade. Thus, there are 
three governing factors: First, the length of handle; second, 
the shape of blade; and third, the size of blade. 

From tests made some years ago by the author he con- 
cluded that an economical load for a shovel to carry in con- 
struction work was about twenty pounds. The late Frede- 
rick W. Taylor decided upon a twenty-one pound shovel 
for handling ore, earth, rock, coal and other materials, most 
of which are handled by contractors. Inasmuch as this 
standard has been accepted by some, and shovels are being 
manufactured for the different materials to carry this load, 
the author has adopted it as his economical load and 
recommends it. 

Scoops and shovels are made in sizes from numbers 00 to 
12. The scoops are furnished in all of these sizes while the 
shovels run from size to 8, the most common sizes in use 
being Nos. 2, 3 and 4. Most manufacturers make these 
sizes but a No. 2 shovel made by different manufacturers 
is not always exactly the same size. 



APPLICATION OF MOTION AND TIME STUDIES 77 

These sizes are supplied in different types of shovels such 
as square and round-pointed, scoops, spades and forks. 
Such sizes are not determined upon with a viewpoint of 
carrying a scientifically gauged load, but to carry a fair 
load and meet a popular demand. 

In order to obtain a shovel carrying an average load of 
21 pounds in different materials, it is evident that the size of 
the blade or bowl must vary with the class of materials to be 
handled. If we are to adopt this standard we must give up 
numbering the sizes and refer to shovels by naming, 
lettering or numbering the sizes for different materials 
making shovels known as rock shovels, earth shovels, con- 
crete shovels, soft coal scoops, etc. One manufacturer 
has adopted this method and ultimately the others may 
come to it if contractors and other shovel users learn the 
meaning of an economical shovel. 

The laborer using a shovel puts forth so much energy in 
an hour. Give him any shovel — even one that is half worn 
out — and so long as it does not bother him he will continue 
to work with it even though the shape and size may be 
wrong. He is working for wages and cares little about the 
tool he uses. Consequently the tool must be changed. 
The handle must be made of such length as to allow him to 
work with more ease and rapidity. The shape should be 
such that the shovel will hold its load withuot spilling part 
of it, and the man can drive it into or under the material 
easily. Make the size such as to shovel a cubic yard in a 
hundred loads instead of one hundred and fifty, and it is 
evident that the man's work will be decidedly increased in 
spite of himself and in many cases without his knowledge. 
Put an economical tool into a laborer's hands and offer 
him a bonus and the increased money he will earn for him- 
self will be small compared to the extra profit he will make 
for his employer. 

In considering the proper load for a shovel, it must be 
borne in mind that the economical load decided upon is the 
average for the average man. Thus a man using a 21- 
pound shovel will move, in whatever class of material he is 



78 MANAGEMENT APPLIED TO CONSTRUCTION 

working, that number of pounds (average) at each shovel 
load. If a man cannot handle such a load and keep up with 
his co-workers he is not suited for economic shovehng and 
should be placed at other work. This is a part of shovel 
management. A man may be a poor shoveler, but a good 
picker; he may be suited to working on the dump, or slop- 
ing or dressing up. It is seldom that a man is utterly 
worthless. 

The blade of a No. 2 shovel is approximately 10 inches 
wide and 12 inches long. This is for a square-pointed, 
plain black or polished shovel. A round-pointed shovel is 
generally made about an inch longer and half an inch nar- 
rower. The two shovels, if of the same size or number, will 
hold the same load in the same class of material. Sizes of 
shovels differ, according to the manufacturer's designs, 
but it will only be by the fraction of an inch. 

In shoveling ordinary earth, it takes about one hundred 
and fifty shovelfuls to make up a cubic yard of earth, 
loose measurement. The average load on a shovel of this 
size is from 12 to 13 pounds. As the economic load is 21 
pounds, the No. 2 shovel load is but 60 per cent of this 
economic load. This means that a properly designed shovel 
for average earth will carry 1% times the load of a No. 2. 
Consequently it will take but ninety shovel loads of such a 
shovel to make a cubic yard. Add a long handle to this 
shovel and the amount of work is further increased. 

These are theoretical figures for the man who knows how 
to shovel and they cannot be obtained from every man. 
It is, however, an easy matter to increase the work of any 
laborer 50 per cent or more by simply placing the proper 
tool in his hands. 

Only recently the author was asked by a contractor to 
point out where he could effect savings. It was suggested 
to the contractor that he could save money in the shoveling, 
for the contractor's men were using well worn No. 2 shovels, 
taking hardly half the economic load. The contractor 
replied that he expected to make certain improvements in 
the work himself, but it is a safe guess that these same worn 



APPLICATION OF MOTION AND TIME STUDIES 79 

down unsuitable shovels were used on another job. Cer- 
tain improvements that a contractor intends to make him- 
self are seldom made, for he seldom has time to consider 
details. 

The Motions of Shoveling 

Few laborers know how to shovel. Why should they? 
They have not experimented with the shovel and no one 
attempts to teach them. The day this chapter was 
written the author watched and timed six men loading 
wagons with short-handled shovels. Only one of the six 
knew the correct motions. He, with the same ease that the 
other men employed, threw three more shovel loads per 
minute than any of the other five men. 

Every contractor and foreman should know the correct 
shoveling motions. Shovelers are known as right and left 
hand shovelers. The right hand shoveler casts his load 
from his right side; the left-handed one from the other side. 
The motions of the right hand shoveler will be described. 

With a D-handle shovel the man grabs the ^^D " with his 
left hand, allowing the cross of the ^^D" to lie in the palm 
of his hand. With his right hand he grabs the shovel 
handle at the top of the iron straps. Standing alongside 
of the material to be shoveled, he bends his back and puts 
shoulders forward. It should not be a decided bending over, 
as in picking up an article from the ground, otherwise the 
man is not well balanced on his feet and his motion is too 
much to one side. 

As he makes this bending motion his feet are placed 
apart, his right foot being close to the material and pointing 
directly towards it. The left foot is kept from 15 to 18 
inches to the rear of the right, forming with it at the heels 
nearly a right angle (see Fig. 1). The right arm at the 
wrist is laid on the right knee and the knees are bent as the 
shoulders and back are bent over, giving the body a 
decided squatting motion. At the same time the shovel is 
thrust forward, allowing the left hand to come inside of the 



80 MANAGEMENT APPLIED TO CONSTRUCTION 

man's left leg just above the knee and well against it. At 
the same time the whole body and the knees are given a 
decided forward motion, assisting the man's arms with the 
weight of his body and the thrust of the knees (and espe- 
cially the left leg) to force the shovel well into or under the 
material. These motions are not only more effective in 
loading the shovel, but also not as hard on the man as when 
only the force of the arms and back is used. 

The shovel being full, the knees are straightened and, 
without straightening the back decidedly, the body is 
turned slightly. With the hands in the same position the 
load is cast away. The casting motion is used only when 
the height does not exceed 3 to 4 feet and the horizontal cast 
is only a foot or two. When the height is greater, the man's 
back must be straightened up and his feet brought together, 
all of these motions being made at once with a decided 
swing of the shovel so as to give the material force enough 
to carry it to the desired height. To cast from the man a 
distance of from 5 to 15 feet, means to straighten the body, 
raise the arms to their natural position, giving them first a 
back swing. Then, as a step is made forward with the 
right foot, the arms are thrown forward, and the load is 
cast. If the material is to be cast to a considerable height 
and distance, it is necessary to combine these two sets of 
motions. 

No matter what the shape or size of shovel or handle 
length, to throw material these excessive distances means to 
cut down the amount of material that a man handles per 
day. No one must expect, by purchasing a shovel of the 
proper size and pattern, to obtain the best results if atten- 
tion is not paid to these other details. This is the foreman's 
and contractor's work. The men must be taught to use the 
right motions and the foreman must see to it that cars, 
wagons, barrows and other receptacles into which the dirt is 
to be cast, are not placed so close as to cramp the men in 
their work. Yet they must not be so far away as to cut 
down the amount of work the men are capable of doing. 

This again calls attention to the heights of vehicles. 



APPLICATION OF MOTION AND TIME STUDIES 81 

For instance, with a D-handle shovel a man working in 
average earth, who will throw into a vehicle not over 3 feet 
high, 1.4 cubic yards in an hour; will throw but 1.33 cubic 
yards into a vehicle 4 feet high; 1.2 cubic yards into a 
wagon 4 feet 6 inches high; with a vehicle 5 feet high 
about 1.1 cubic yards will be handled; 5 feet 6 inches 
high, not quite a cubic yard; and for a height of 6 feet, 
only 0.85 cubic yards. These are the details, the losing 
sight of which costs hundreds of dollars. 

A contractor may show a profit on his jobs, but with these 
losses going on he is losing the money that would mean an 
extra profit. 




Fig. 1. — Position of feet for right-hand shoveler using a D-handle shovel. 
Arrow shows direction of shovel. 



With the long-handled shovel, the correct method for a 
right hand man, is to grasp the shovel, with the left hand 
about six inches from the end of the handle. The right 
hand is placed on the shovel handle just above the straps. 
The right foot is placed close to the pile of dirt with the 
right side of the foot nearly parallel to the material. The 
left foot is placed 12 to 15 inches behind the right foot, the 
heel a little back of the right heel, forming an acute angle of 
about 30 degrees, as in Fig. 2. 

The right hand is allowed to rest on the right leg just 
above the knee ; the left hand against the body, at about the 
waist line or just below it. The shovel being against the 
dirt, the head and shoulders are inclined forward and at the 

6 



82 MANAGEMENT APPLIED TO CONSTRUCTION 

same time, as the arms are held rigid the knees are bent, 
giving the body that squatting motion. The entire body 
is thrust sideways, forcing the shovel into the material 
almost by the weight of the body and causing the arms and 
back to exert but httle energy. The shovel is then lifted by 
straightening the knees and shoulders. With a slightly 
swinging motion the load is cast away. With the extra 
length of the handle this is done much more easily for a 
greater distance and height than with a D-handle shovel. 

It can be seen at once that, in using the long-handled 
shovel, the man's position is more natural and that several 
decided motions that must be used with short handles are 
eliminated. This means more shovelfuls with less exertion. 
Couple this with the proper shape and size of shovel and 
the improvement in the man's work over that done by the 
untaught shoveler, with any short-handled shovel that may 
be given to him, is easily manifested. 

In shovehng most materials a man should shovel from 
the bottom of the pile, pushing his shovel well under it, 
getting not only a good load, but assisting the material in 
the pile to run down so that the material is kept loosened. 
This insures larger loads. For fine sand and a few similar 
materials that are never compacted, this is not necessary 
and a worker can shovel from the side of the pile and do 
efficient work, unless it is necessary to clean up all the 
loosened material. Shoveling should never be done from 
the top of the pile, as the shovel is not likely to get a full 
load. 

When shovehng from the bottom of the pile there should 
be a good base to shde the shovel on. The ground, if 
smooth, is a good base, but smooth rock or pavement is 
better. A board platform is good but one of sheet iron 
insures quicker work. 

In cutting down a pile of dirt, rock, coal or any material, 
a short handled ^^D" shovel should be used. The '^D" 
is held in one hand; the shovel grasped on the straps 
close to the blade with the other and held at arm's length 
from the body. Then, bending the back and digging the 



APPLICATION OF MOTION AND TIME STUDIES 83 

tool into the material and drawing the shovel towards the 
body, a great mass of material can be cut down and pushed 
over the edge of a vehicle, embankment or ledge. By this 
means a mass equal to several times more than the shovel 
would hold is moved. 

In starting to unload a flat car this motion of cutting 
down should be used, while the last dirt on the car should 
either be cast or pushed off with the shovel, or a small 
hand scraper. 

Deep cars, especially hopper bottom ones, should not 
be unloaded by shovels if other methods can be used. For 




Fig. 2. — Position of feet for right-hand shoveler using long-handled shovel. 
Arrow shows direction of shovel. 



most materials a cutting down scoop should be used. The 
author has never seen this style of shovel with a diamond- 
shaped point made except on a scoop and a spade. The 
spade, not being meant for shoveling, leaves only the 
scoop for this work. The diamond point greatly reduces 
the size of the scoop. As soon as the shoveler gets down to 
the bottom of the car with this scoop, he uses a shovel 
suitable to the material being handled. The tool should, 
by all means, have a long handle. 

In unloading cars into wagons or trucks, the motions 
are shoveling, elevating and casting. In elevating material 
the most efficient work is done with a long-handled shovel. 
Never attempt to throw the material very far from the 
shoveler. In performing this act the body is drawn from 



84 MANAGEMENT APPLIED TO CONSTRUCTION 

the stooping shoveling motion to an erect position and the 
material is thrown within a foot or two of the man's head. 
To throw it very far in front or behind the man cuts down 
his efficiency. 

Men can cast farther and with greater ease to one side of 
them than in front or behind them. To cast any distance a 
man should take one step with one foot in the direction to- 
wards which he is to cast. This allows him to throw the 
material farther. Under no circumstances should a man be 
allowed to walk when shoveling: Generally more work can 
be done in rehandling the material than when the men are 
allowed to walk with small loads. 

In spreading material with a shovel there are no certain 
and exact motions to be used. At times regular shoveling 
should be done; in other cases the cutting motion is used, 
and at times the material is pushed around with the shovel. 
In some cases it is only a question of leveling off a small 
amount of material. 

In trimming, the shovel is grasped in the same general 
manner as in shovehng and the material is pushed ahead 
of the shoveler into piles. It is then shoveled into a vehicle 
or cast into low places. 

Men should not walk while shoveling. This is a waste 
of time and money. Yet contractors and foremen fre- 
quently allow men to do this. A shovel is not meant for 
transporting material; it is a tool for casting, elevating and 
similar uses. Beyond reasonable limits the material should 
be rehandled, or, better still, buckets, wheelbarrows, bug- 
gies, chutes, conveyors, carts, cars, wagons or other means 
of transporting and elevating should be used. Even for a 
small yardage, wheelbarrows should be employed. Men 
should not walk in shoveling; two steps are too many to 
take; one step should be the limit. 

The Limits of Shoveling 

The exact limit of shovel work is difficult to set, as it 
depends upon the individual shoveler. One man can shovel 



APPLICATION OF MOTION AND TIME STUDIES 85 

dirt from a trench 10 feet deep as easily as another can 
from a six foot trench. The author once had a man in his 
employ who could throw earth from a sixteen foot trench 
with a long-handled shovel, but it was not economical 
to have him do this. Also, some men can cast dirt 15 or 20 
feet as easily as others can cast 10 or 12 feet. The limits 
must be set for an average workman, just as the load set 
for a shovel must be an average. 

For casting a horizontal distance and taking only one 
step with a long-handled shovel, 12 feet is the maximum. 
For a short-handled shovel, 10 feet. 

For elevating and casting as in loading into a wagon or 
car, the maximum horizontal distance should be eight feet 
with a maximum height of six feet for a long-handled 
shovel. With a short-handled tool and a maximum height 
of six feet, the limit of horizontal distance should be five 
feet. The shoveler should never be allowed to let his 
shovel hit or rest upon the side of a vehicle as he is shoveling. 
This means a waste of time. The load should be thrown 
clear of the shovel. If the shovel becomes foul in the mud 
or cement, a small metal or wooden paddle should be used 
to clean it. Hitting the shovel against a rock does not 
clean it, but only injuries the tool. 

For elevation only, as in shoveling from a trench, the 
maximum height for a long-handled shovel should be 8 feet. 
For a short-handled tool the limit should not exceed 6 feet. 
These are all maximum distances. To do the most econom- 
ical work they should be reduced about twenty per cent. 

To obtain the best results in shoveling, the individuahty 
of the workman must be preserved. This is best done by 
tasks, but even when this is not always possible, the gangs 
can be made small, so that each man can be made to feel 
that his work is being watched. Working the men in 
large gangs defeats this purpose, makes the men lose in- 
terest in their work and encourages loafing. 

Another extreme is working one man by himself. In 
very few instances can one man do efficient work. He 
is sure to set a slow pace. It is also against the nature of 



86 MANAGEMENT APPLIED TO CONSTRUCTION 

most men to want to work by themselves. Two men 
working together will labor at a better pace. Most 
laborers have ^^ buddies" wdth whom they travel and work 
and work better when they are together. It is nearly 
always possible to work two men together, but at times 
more are needed. If so, the number can be increased to 
four, six or eight. 

If this is done, as in loading buckets, carts or cars, two 
men can come and go at the same time with their shovels. 
Thus in loading, if four men are shoveling, man No. 1 
and man No. 3 can both be loading their shovels, while 
man No. 2 and man No. 4 are discharging the loads from 
their shovels. Thus two sets of men work together, each 
spurring the other on, and each set of men doing different 
work at the same time. 

This might be termed "tesun shoveling." Teach it to 
men. They will become accustomed to it and like it, and 
keep it up without much attention from the foreman or 
contractor. Even with six, eight, ten or more men, this 
method can be followed : 

With two men working together or men working in teams 
it becomes an easy matter to assign tasks and to keep a 
record of their work. 

No matter how he is taught or made to shovel, a man 
cannot keep continuously at work. He must spell himself. 
Under ordinary conditions and with good workmen shovel- 
ing in average earth, a man spells himself about every 50 
seconds. If he is shoveling to a great height (six to eight 
feet) or casting a long distance, he is compelled to rest 
about every half minute. If the conditions are favorable, 
or the proper incentive is held out, a man will not spell 
himself for a minute or even two. The author has had men 
go for two and a half minutes without spelling themselves. 
The rest lasts from three to six seconds. A rest longer 
than this is loafing. 

Thus, the oftener a man stops to spell himself the greater 
is the lost time during a day. This alone can mean a 
large expenditure on a job and shows the necessity for 



APPLICATION OF MOTION AND TIME STUDIES 87 

good conditions under which to shovel. Thus, without 
attention from the foreman, they will, of their own accord, 
cut out considerable lost time. 

A step farther can be made in this direction. The 
size of a shovehng gang can be so gauged as to fill the vehicle 
in from one and a half to two and a half minutes, thus 
giving the men an incentive to work in pairs, without 
spelling themselves, until the load is finished. A decided 
rest is then allowed after which the work is speeded up, 
without rest for another period. 

To illustrate: If a w^agon can be loaded in two and a 
quarter minutes the men can be taught to spell themselves 
between loads, working without rest during the period of 
loading. If it takes eight minutes to load a wagon, four 
men working in the crew, the men will spell themselves for 
about four seconds, at least eight times. This means a 
loss of time for the crew on each load at the rate of one 
man for two to two and a half minutes. These are features 
of management beyond the control of the workmen, for the 
inclination to rest for a few seconds will come naturally. 
It thus becomes necessary for the foreman to watch these 
things and control them as far as possible. 

One of the great troubles with shovels in the past, as 
used for nearly all purposes, has been in the method of 
selecting and buying them. To a great extent buyers 
have simply ordered shovels from their dealers, specifying 
as to length of handle and w^hether round or square points. 
If the shovels did not last as long as anticipated, a kick 
was made and possibly another make of shovels tried. In 
most cases contractors do not even know the name of the 
maker of their shovels. 

How Shovels are Manufactured 

To know how to buy shovels, a man should know 
something of their manufacture and selling. As the author 
has been a user of shovels and never a manufacturer, 
his manufacturing knowledge has been obtained only in 
order to purchase intelligently. 



88 MANAGEMENT APPLIED TO CONSTRUCTION 

Shovels are made by stamping the blade out of a piece 
of sheet steel, or by forging or rolling an ingot into the 
proper shape and thickness, and forming it into the 
finished product. 

Stamped shovels are cheaper and meant for hght work, 
as moulder's shovels or those for handling snow or grain. 
Such shovels never have to stand severe service and can be 
made cheaper for this reason. 

Shovels are made with straps to hold their handles. 
These straps are shaped and formed in several different 
ways. One is known as ^'socket strap," another as the 
''plain strap," a third as the ''riveted strap," and the fourth 
as "hollow back" shovels. 

The socket strap has a socket at the base of the handle, 
with straps extending up the handle for about a foot. 
This is the strongest method of fastening the handle to the 
shovel. Plain straps are without the socket and the straps 
extend up the handle. As the name denotes, riveted 
straps are those riveted onto the blades. At times these 
straps are reinforced with another piece of steel. Hollow 
back shovels have but a single strap curved into a round 
tube through which the handle is inserted, allowing it to 
slip down against the back of the blade. 

The hollow back and light weight shovels previously 
mentioned as being stamped out of a piece of sheet steel, 
are first stamped and then the straps are welded onto the 
blades. This makes a plain strap shovel. The hollow 
back shovel either has the strap welded onto it or it is 
stamped out with the blade and then shaped into a tube 
to receive the handle. 

The riveted strap is also riveted onto the shovel after 
the blade is shaped. This may be done either with a 
stamped, rolled or forged shovel. 

The ingots for a forged or rolled shovel are manu- 
factured in two ways. First, by means of crucibles. This 
means that the metal is heated in crucible pots and poured 
into ingots. This is the most expensive method and pro- 
duces the best results. Shovels so made are always marked 



APPLICATION OF MOTION AND TIME STUDIES 89 

'^crucible steel," unless the manufacturer makes only this 
grade. 

The second method of casting ingots is from open 
hearth furnaces which does not produce as good a grade of 
steel. Such shovels are marked ^^ solid cast steel." Shov- 
els that are stamped out are generally marked ''solid 
steel." 

The ingots are cast in such shape as to make the various 
sizes and shapes of shovels and also the straps. In forging 
or rolling and shaping them, it is possible to make the 
blade of varying gauge, the point or cutting edge being 
lighter. The back edge and part around the base of the 
socket are of heavier gauge. This is important, as a great 
strain comes on the shovel around the base of the socket, 
and a poorly made shovel is very likely to break at this 
place. This is especially so if the workman is allowed to 
place his foot upon the blade in shoveling. 

The cutting edge of the blade should be of the best 
material, for as it becomes worn the carrying capacity of 
the shovel is cut down, and the shovel becomes worthless. 

The best grades of crucible steel for shovels often have 
certain alloys combined with the steel. These alloys add 
to the cost, but they drive out of the steel certain impurities 
and gases, making the metal harder and tougher. The two 
most used alloys are nickel and chrome. Steel made with 
these alloys gives better wearing results than the ordinary 
carbon steel. As a further means of securing greater 
efficiency from the steel, the shovel, after being formed, 
should be heat treated. This heating tempers the metal, 
making it tough and strong. This is another means of 
preventing the cutting edge from wearing down and making 
the shovel smaller. 

Shovels are either painted black or polished. Some 
tools have the upper half of the blade painted and the 
other half polished. An extra price is generally paid for 
the polished goods. For contractors the black shovel is 
just as good as the • polished. Some demand the polished 
goods, believing that they are getting a better shovel, 



90 MANAGEMENT APPLIED TO CONSTRUCTION 

as they believe the paint is put on to cover defects. Any 
defect in a piece of steel or in the manufacture of the shovel 
that would not entirely condemn it for selling purposes can 
be hidden by polishing as readily as with paint. Conse- 
quently the polishing means nothing except to make the 
shovel bright and to grind away a thin coating of the steel. 

Most manufacturers grade their shovels. An honest 
manufacturer replaces his tools that are not satisfactory, 
so he does not use paint, nor polish them to hide imper- 
fections. A shovel showing flaws, that is, not trimmed 
properly, or one that is not up to the manufacturer's 
standard set for a certain grade, is placed in a lower grade. 
A manufacturer who makes only one grade (and only a few 
do that) must scrap a shovel that cannot be placed on the 
market. A brand of shovel carrying the manufacturer's 
name must come up to his standard or else he cannot afford 
to place his name upon it. 

Some manufacturers do not grade their shovels accord- 
ing to defects, flaws, etc., for all of such may be scrapped 
to be heated and made over again. These firms do their 
grading according to the character of the steel used. Thus, 
the first grade may be crucible steel, the second and third 
grades open hearth or cast steel, and the fourth grade sheet 
or solid steel. 

No tool is stronger than its weakest part. This is 
true as to the metal of the tool, and with a shovel it applies 
especially to the handle. A shovel with a good blade, but 
with a cheap handle, is a poor investment. The wood 
in the handle must be of a good grade, well seasoned, 
carefully selected. The handle must be skillfully made. 
The handle should outlast the blade, for it is seldom pos- 
sible on construction work to have a blacksmith put a 
new handle on an old blade. 

Dimensions of Shovels 

The dimensions of a shovel are those pertaining to 
the blade. The length is measured along the center Hne 
drawn from the center of the cutting edge to the center of 



APPLICATION OF MOTION AND TIME STUDIES 91 

the top strap at the top or rear of the blade. This measure- 
ment is the straight airline and not along the metal. The 
width is that straight across the blade at the cutting edge. 
In speaking of the length of handle, the shovel is laid on the 
ground face down and the length ^^over all" is from the 
point or cutting edge to the tip of handle. The length 
from the top of blade gives the net length of handle. 

An important consideration is the lift of the shovel. 
The lift is considered in two ways. Some manufacturers 
lay the shovel on its back with the blade pointing up. 
The lift is then measured from the ground to the point 
of blade or the center of the cutting edge. This lift can 
be changed to suit the user, varying as it does from a 
few inches to 8 or 10 inches, except in such tools as are 
made from set dies. In these the dies set the lifts and they 
are known as '^regular lifts," ^'half lifts" and '^low lifts." 

Other manufacturers measure the hft by placing the 
back of the blade on the ground and measuring from the 
tip of the handle (for a long-handled tool) to the ground. 
For a D-handle, the measurement is made from the back 
of the ^'D" to the ground. This lift can also be changed 
except on the shovels made with dies. The author believes 
this last method of considering the lift is to be preferred, 
for it is this measurement that gives the user the idea of 
what lift he must make with his arm and back in handling 
a shovel. 

A simple test of the strength of a shovel is to clamp the 
blade of a shovel to a table or bench, with the handle 
sticking up. To this end a pressure can be applied with a 
machine or weights can be tied on it. Any well made 
shovel should, without developing weakness, stand a pres- 
sure of about 200 pounds. 

How Shovels are Sold 

For domestic trade, most manufacturers tie their shov- 
els in half-dozen lots, although they can be purchased 
wrapped in burlap, crated or boxed. For export trade, the 
bundles or crates contain a dozen shovels. 



92 MANAGEMENT APPLIED TO CONSTRUCTION 

Shovels are sold by manufacturers either direct to the 
consumer or through agents or hardware dealers. Manu- 
facturers selling direct always sell under their own brands. 
Those selling through jobbers may sell under their own 
brands, and may also brand the shovels under the local 
jobber's or dealer's private brand. 

No matter how the shovel reaches the consumer, a 
manufacturer selling only under his own brand is apt to 
give better satisfaction to the consumer, for his name and 
brand are on the shovel and he feels responsible. 

On the other hand, a shovel offered for sale under a 
dealer's brand may not equal in grade those sold under the 
manufacturer's brand. Then, too, the responsibility is 
divided. The customer will not know who the manufac- 
turer is, so he must rely for satisfaction upon the dealer. 
The latter is apt to place the fault upon the manufacturer, 
and say he will take the matter up with the factory. If 
the manufacturer is producing a tool under the specifica- 
tions of the dealer, his responsibility ceases when the dealer 
accepts them. The buyer is thus likely to fare badly. The 
author's preference has always been to purchase a shovel 
bearing the manufacturer's name and brand, even if such 
a tool costs a little more. 

Manufacturers are to blame for not branding their 
shovels better. Fancy colored labels soon wear off. Most 
manufacturers stencil their name and the grade of shovel 
on the top strap, but this is in small letters and can also be 
worn smooth. The name and brand should be stenciled on 
the strap and also burnt on the handle. The place on a D- 
handle shovel is on the flat part of the ''D." On a long- 
handled shovel is should be about 18 inches from the end 
of the handle. Thus, no matter how long a shovel is used 
the name of the manufacturer and the brand can always be 
read. This would be a protection to the manufacturer and 
a service of great satisfaction to the user, who could dupli- 
cate a shovel that proved well made and economical in its 
use. 

Naturally a user of shovels likes to get them from some 



APPLICATION OF MOTION AND TIME STUDIES 93 

nearby dealer. He has established credit there and can 
get a half dozen or a dozen shovels quickly. He is not 
willing to wait several weeks. If the dealer does not handle 
the particular brand of shovels desired, he will stock up 
on that brand if he feels that the customer is a desirable 
one and will continue to trade with him. 

Shovels are listed as to prices and there is generally 
a discount from the list. Manufacturers sell to those with 
established credit on a basis of net cash at 60 days and two 
per cent discount for cash within 10 days from date of 
invoice. In buying, it is necessary to state the style, 
size, kind of handle, grade or brand, and whether black 
painted or polished shovels are desired. Black shovels are 
shipped unless polished ones are specified. 

The Abuse of Shovels 

In closing, a few words may be written regarding the 
abuse of shovels. They are not meant to be used as 
hammers to knock out tail gates and open car doors. Nor 
are they built for levers to be used in dumping cars or 
prying out rocks. Nor are shovels meant to cut roots and 
small stumps. Shovel handles are easily broken when used 
as a chuck for a wagon or cart when being dumped, and it 
is not advisable to use them in swinging the boom of 
derricks, in place of a tag line. The wooden ^^D" is not 
strong enough to tamp dirt or stone. The ^'D,'^ once 
cracked or broken, makes the shovel useless, unless an 
iron '^D'' is used. Shovels are meant for use as shovels 
only and no matter how well made they are, they will 
not stand abuse. 

Author's Note. — The study of the use of shovels is given in this chapter 
in order to show how time and motion studies can be made to aid in system- 
atizing shovehng, and to illustrate how all construction work is susceptible to 
analyzation and can be placed on a systematic basis. 



CHAPTER VII • 

APPLICATION OF MODERN MANAGEMENT 

The various aspects of modern management have been 
discussed as well as the underlying principles and those 
auxiliary details that assist in devising a modern system 
of management. In this chapter those principles set forth 
in Chapter III, will be discussed showing how construction 
can be carried on and cheapened by following these basic 
principles. 

Planning General Methods 

Planning the general methods to be used is the work of the 
contractor and his general manager. The first essential 
is to have knowledge of the job. This is obtained by visit- 
ing the site of the work, making a close study of the plans, 
specifications and contract, and obtaining the quantities 
of work to be done. 

The quantities of each class of work to be done for some 
kinds of jobs may, in some cases, be furnished by the 
engineer. This is true of railroads, but the owner does not 
guarantee the accuracy of such quantities. They are ap- 
proximate only. In other kinds of construction the con- 
tractor must estimate such quantities from the plans, and 
is himself responsible. If sub-contractors are to use quan- 
tities, the latter are generally compelled to make their 
own estimates. This is the case in the erection of buildings. 
This class of work is known as quantity surveying. It is 
always of importance, but is not so vital on a contract with 
unit prices as when a lump sum bid is made. 

The owner should be as much interested in the correct- 
ness of the estimates of quantities of work to be done 

94 



APPLICATION OF MODERN MANAGEMENT 95 

as is the contractor. It should, therefore, be his business 
to have the quantity surveying done by a reputable firm 
and have prices based on such a survey. This should be 
the practice and it is pleasing to note that some companies 
are taking up this work of quantity surveying. Contrac- 
tors should do everything in their power to introduce this 
method. If owners will not pay for this work, then con- 
tractors should do so and include it in their bid prices. 

It is upon these quantities that the estimate of cost 
must be made and the general plans of the methods to be 
followed mapped out. 

Most contractors think the first work to be done in 
bidding upon a job is to make up the estimate of cost. 
This is erroneous. An accurate and fair estimate of cost 
can be based only upon the general methods to be used and 
the kind of plant to be employed. Even a man who 
may never touch pencil to paper in order to analyze his 
cost and make up his estimates, or one who states that he 
bases his estimates entirely upon his long experience in 
construction, and decides upon his methods and plant after 
he secures a job, will find himself following the idea of 
methods and plant first, and deciding upon his costs 
afterwards. 

This is a typical conversation between two partners or 
a contractor and his general manager. ^' Jim," asked one, 
^^what can we do that excavation for?" 

"I 'would say 45 cents," was the reply. 

'^Well, I bet we can do it for 40 cents and make a good 
profit," argued the other. ^'Look at this plan. We can 
put that largest steam shovel of ours in here, lay two sets 
of tracks to it and carry the spoil to these two dumps, 
using three trains, having one under the shovel all the time, 
and fairly make her hum. You know we have excavated 
nearly 50,000 yards a month with her with two trains, 
and with three we will go up to 60,000 and some months 
65,000. 

^'Now 5,000 extra yards moved in a month means $2,000 
— enough to pay for the extra train and reduce the cost of 



96 MANAGEMENT APPLIED TO CONSTRUCTION 

all the excavation at least 20 per cent. Then I propose that 
we make all the waste they will allow us to make from the 
top of the cut with scrapers and, on a short haul of a hun- 
dred feet or less we can do it at a good profit for 30 cents. 
They have got 40,000 yards of waste marked on the plan 
and that means over $5,000 profit at 40 cents a yard. I 
think we can further reduce the cost of the steam shovel 
work by using larger cars. You know we have wanted to 
try out these large cars and this is the job to do it on. I 
tell you we can bid less than 40 cents and make a big profit 
on this job, but I think 40 cents will take the job. Don't 
you?" 

'^I beheve you are right," replied the other partner. 
'^Then, too, the extra train and the scrapers will cut down 
the time, so we can make a quicker finish, and that means 
less overhead charge." 

So the conversation continued, discussing plans and 
methods, the type and amount of plant to use, time sched- 
ules and estimates of cost. If the prices and plans were 
to be based upon such details why not write them down 
and sketch them on paper for use if the job is secured. 
Then it is only one step more to make up such plans first 
in order to estimate the costs and set the bidding prices. 
This gives an exact basis of figuring costs and also of car- 
rying on the job, which can be improved as the work is 
developed, leaving nothing for guessing or for a chance 
decision. 

Some of the ablest contractors in the country are coming 
to this view and are following along the general lines laid 
down by the author. Thus, under the heading of planning 
general methods we have for consideration (four) sub- 
headings, (a) General Plans; (h) Plant Selection; (c) Time 
Schedule; (d) Estimates of Cost, in their natural sequence. 

General Plans 

This work must start with a study of the owner's plans 
and specifications and from an inspection of the ground. 
Copious notes must be made. A list of all materials with 



APPLICATION OF MODERN MANAGEMENT 97 

probable amounts must be made so as to obtain quota- 
tions and deliveries on them. 

Then the actual planning of the work can be begun, 
designating the general methods to be used. These fea- 
tures will be noted as they are worked out from the owner's 
plans and the notes taken, accompanying the notes with 
sketches where necessary. These features, however, must 
be done in connection with plant selection. 

Plant Selection 

This is the most important part of the general plan- 
ning. The detailed methods will depend upon the kind 
and amount of plant to be used, as will the progress to 
be made upon the job. The selection of the plant will 
govern, to a great extent, the estimated cost of the various 
units of work. To select the plant properly one must 
possess adequate plant knowledge and must keep in mind 
the necessity for substituting machinery for hand methods, 
wherever possible, yet not have an excessive amount of 
plant. These features of plant selection have been covered 
in Chapter V. 

All the general items and amount of plant to be used 
should be set down in a schedule, showing the different 
machines and upon what part of the job they are to be 
employed. This must include forms for concrete and tem- 
porary structures for other uses, so that all of these things 
will be known in advance and included in the estimate of 
cost. It will be from the notes and sketches here made that 
the plant layout will be designed. From the list of plant 
thus made it will also be possible to decide what new ma- 
chinery will have to be purchased, so that quotations and 
dates of delivery can be obtained. All of these things 
will mean that a job will run smoother. 

Time Schedule 

The plant selected, the general plans made and the 
kinds and quantities of work to be done listed, it is pos- 



98 MANAGEMENT APPLIED TO CONSTRUCTION 

sible to arrange the time schedule. If the time Hmit for 
the job is set by the owner, the schedule is made up by 
the contractor so that he may know the amount of work 
that must be done each week, month or year. If the con- 
tractor is to set the time limit, he must arrange the sched- 
ule to see how soon the job can be completed, and, allowing 
a fair margin of time for a finish, name the number of work- 
ing days or set the date for completion. An exact sched- 
ule is of great assistance in this matter. 

If the contract names a bonus for quick completion and 
a forfeit for delays, even more importance is to be attached 
to the time schedule. It is surprising when this work is 
done with knowledge and care, how quickly some jobs can 
be completed. Some years ago the author was bidding 
on an important job upon which the owner asked for a 
14 month finish. Taking into consideration the items and 
quantities of work, the plant to be used and the general 
plans, the author made up a time schedule to finish the 
job in 7}4 months. Adding 6 weeks to this to be safe, he 
suggested to the president of the owning company to make 
the job a 9-month's finish on a bonus and forfeit basis. 
This was done and the job was finished in less than 9 
months and a bonus earned. Such an offer could not 
have been made with safety without careful planning and 
consideration. 

Time schedules, graphic progress charts and diagrams 
should be made. These will show the various amounts 
of work to be done and divide the work so as to show what 
plant will work on the various divisions. All available 
information should be placed on such diagrams and charts. 
These are not used to record the progress made but are 
kept as standards to work to throughout the life of the 
job. 

When the work is started, additional charts, diagrams 
or profiles are made, upon which the actual progress is 
recorded. Comparisons are made of these with the origi- 
nals or standards to see if the time schedule is being 
carried out properly. If it is not, arrangements can be 



APPLICATION OF MODERN MANAGEMENT 99 

made to increase the rate of progress, notation being 
made on the originals to show wherein they were wrong so 
that this mistake is not hkely to be repeated on another 
job. 

The time schedule should hkewise show when each 
item of plant is to be installed, so that arrangements can 
be made to have it in ample time. The same thing holds 
true for construction materials. Otherwise delays may 
occur that will prove expensive. 

The time schedule and progress charts can be made 
up in two ways. One is a diagram to show by a curve the 
amount of work done and the time consumed. This 
method is not applicable to all kinds of work. The sec- 
ond method is to show by a chart, profile or plan, the work 
done, using figures and lines or different colors if these will 
answer the purpose. Duplicates of these can be made for 
use by blue printing. 

In some cases besides the general progress chart there 
can be made up a summary progress chart showing many 
features in a concise form and giving the summaries of all 
work done. This will be a short history of the work. 
One such chart for each section. If the job is small, one 
for the entire job is sufficient. This summary can show 
the percent of work done, the date, the amount finished, 
the units of work done, the estimated cost, the actual costs 
and other features. Thus a busy contractor or general 
manager can tell the important features of the job at a 
glance. The time schedule and progress charts will be 
used by the routing departments when the job is obtained. 

Estimates of Cost 

With the foregoing information in hand, estimates can 
be made of the costs of the work. This subject has been 
discussed in The Economics of Contracting Vols. I and II, 
so it will not be taken up here. If the job is secured the 
estimated costs should be used as the standard for com- 
parison with the actual costs. 



100 MANAGEMENT APPLIED TO CONSTRUCTION 

The contract having been obtained, the work akeady 
done becomes the basis for planning and handling the job. 
All of these things should be revised at once so that im- 
provements can be made wherever possible. This brings 
up for consideration 

Designing and Engineering 

The work already described is prehminary to bidding, 
and, besides being useful in presenting a bid, becomes of 
value as soon as the job is obtained. The work to be de- 
scribed follows immediately upon the award of the contract. 
It can be deferred and money made on a job, but the best 
type of management demands that this work be done 
in whole or in part before a machine is placed on the job 
or a hand turned to the work. It is termed engineering, 
for this is the broad meaning of engineering given to the 
world by the late A. M. Wellington, when he said: ^'An 
engineer is one who can do with one dollar what another 
may do after a fashion with two.'' 

In Wellington's day the world did not know the term 
'^scientific management. " Little was known about modern 
efficiency engineering, but the greatest American engineer 
of his day, the man who left the world richer for his writ- 
ings in Engineering News and his classical books, antici- 
pated the work of the future in giving utterance to this 
wonderful definition. It is not only the basis of scien- 
tific management, but of all the work of engineers and con- 
tractors. 

It means that one who may not possess an engineer's 
degree may, by his own studies and training in life, become 
a competent engineer — even a great engineer. Many 
of those men who built the great engineering structures 
during the first half of the last century were men of this 
stamp. There were few colleges in those days that taught 
engineering or gave such degrees, and these early engineers, 
with a fair knowledge of mathematics, were pioneers in giv- 
ing the world engineering formulae and the modern prac- 



APPLICATION OK MODERN MANAGEMENT 101 

tices of civil, mining and mechanical engineering. Such 
men were Peter Cooper, Roebling, Latrobe, the first Traut- 
wine and many others. Even today, when engineering 
colleges are numerous, the world honors men of this stamp, 
— men who have educated themselves in engineering and 
established themselves as great engineers, such men as 
Edison, Cooper, Mulholland and Whinery. 

For this work of designing and engineering, therefore, 
an engineer with a college degree is not absolutely essential. 
One trained in construction and in the management of 
machines and men can do the work. If he also possesses 
an engineering education it may make his work better and 
he will probably be more efficient. 

Under the modern system of management it is this de- 
partment of designing and engineering that will be in 
charge of all the work from start to finish. The entire 
work will be planned in every detail by it and the depart- 
ment must see that these plans are carried out. When 
it is not possible to follow the plans the reason why must be 
found and recorded in order to plan better in the future. 
The contractor himself or his general manager may be at 
the head of this department. If so, he must carry out his 
plans to the letter, instead of deciding matters off-hand, 
as the work is being done. 

Making Charts and Plans 

The general outline of plans was made as estimates 
were being made upon the job. These are now worked up 
in detail. The character of the work will govern the 
extent of the plans needed. For excavation only the plans 
will be few and simple. For a concrete structure, such as 
a bridge or building, there must be a large number of 
plans. For such a structure as a dry dock or one that 
embraces a number of difficult classes of work, a set of 
plans for each class of work may be necessary. 

The entire job may be covered by these plans or it 
may be divided into sections or small divisions and plans 



102 MANAGEMENT APPLIED TO CONSTRUCTION 

made for each one. The general methods to be followed 
should be shown on the plans as well as the work to be 
done. It will often be possible to take copies of the owner's 
plans and adapt them to the use of the contractor. In 
order to decide upon the forces to be used on each part 
of the job, the probable amounts of work should be placed 
on these plans. The necessary forces can then be esti- 
mated and noted on the plans. Thus the kind and amount 
of work to be done, the location of the work, and the 
forces needed are all on a single plan, and any intelligent 
foreman can take such a plan, start that part of the work 
and carry it on with the minimum of supervision. 

The charts to be made will consist of those to show 
the progress to be made and others to record the actual 
progress made. Other charts and diagrams to record spe- 
cial features may be needed as the job progresses. For 
instance, in studying the service of special machines, or in 
making comparisons of costs with certain standards or 
the waste of some materials, results can frequently be 
shown by charts or diagrams. 

Many contractors may consider these things useless, 
for they have done without them in the past. They are, 
nevertheless, the basis of modern management and are 
necessary if nothing is to be left to chance. Fifty to one 
hundred years ago all business was carried on without the 
aid of the telegraph and telephone, but today few would care 
to give up these modern conveniences. So, those who have 
learned to apply modern methods would not do without 
them. 

Designing Plant Layouts 

The various plans having been made, the plant layouts 
can be mapped out and placed on these plans. These 
plant layouts will be made from the list of plant selected 
when bids were made upon the job, with the necessary 
appurtenances to make the plant complete. It may be 
necessary to make surveys so as to plan the layouts in a 



APPLICATION OF MODERN MANAGEMENT 103 

systematic manner, having distances given so that each 
machine will fit in its exact place and thus reduce the 
service to the minimum. It is evident that, if materials 
have to be moved excessive distances, as is frequently 
the case on many jobs, the cost is bound to be greater than 
it should be. This is a common failing in placing concrete 
mixers which causes the raw materials to be handled at a 
greater cost than is necessary. The same thing happens 
with other machines. 

Another advantage gained in drawing plant layouts 
is that some device or machine may suggest itself to be 
used in place of hand methods. This may mean many 
dollars saved on a job. It also means that ground is not 
wasted, nor is one machine placed to interfere with another. 
To do this work properly, the dimensions of all machines 
must be shown on the plans and the range of the machine 
must be given. 

The storage yards or spaces for materials must likewise 
be laid off and marked on the plans. This alone may 
mean many dollars for the contractor. A common mis- 
take made in this connection is in storing concrete materials. 
The bulk of a thousand cubic yards of concrete will be 
about 1,250 barrels of cement, equal in bulk to 185 cubic 
yards of cement, about 450 cubic yards of sand and about 
925 cubic yards of crushed stone or other coarse aggregate. 
The logical method is to store the stone, the largest bulk, 
close to the mixer, the sand next and the concrete the far- 
thest away. In most cases, the cement shed is next to 
the mixer, the sand pile next and the stone farthest away. 
Paper planning will prevent this in most cases. 

Certain kinds of plants must be moved along with the 
work from day to day, week to week, or month to month. 
If this is the case, the plant layout should be given at the 
start and then the various moves for doing given parts 
of the work should be shown. In other cases — as a concrete 
mixer on a concrete road or a steam shovel in a pit — the 
plant is moved continually over the work. Such moves 
can also be shown on the plans, giving, at the same time, 



104 MANAGEMENT APPLIED TO CONSTRUCTION 

the approximate amount of work to be done from each 
set-up, and showing the path of the machine. 

It is just as important for a contractor to plan the lay- 
out of his plant as it is to plan the erection of a building. 
There have been many houses built without plans; they 
show it in their cost and design. 

Designing Rigging and Structures 

There are many devices such as derricks, concrete hoists 
and chutes, cable ways and other rigging that contractors 
have to erect on different jobs. Sometimes these must be 
erected several times on the same job. Generally these 
things are shipped to the job and a foreman is allowed 
to erect them. A large stiff-leg derrick may be placed and 
rigged ready for work by one foreman in several hours. 
He may take it down without a mishap in less time. An- 
other foreman may take the greater part of two days to 
erect the same derrick and in taking it down may break 
one of the stiff legs, bend the irons on it and break the 
gudgeon pin in the top of the mast, using a day in getting 
the derrick in shape to haul it to another site. 

Such things should not happen. The rigging of such 
machines should be done, not according to the meagre 
knowledge of the man who is given the task, but according 
to the best practice of the most adept man in the organi- 
zation. This can be done only by having a standard plan 
•with detailed instructions showing each step in the task. 
In like manner, an expert will put up a large tent in an 
hour or two, while a tyro is likely to punch a number 
of holes in it, tear it at the bottom, and use several hours 
in so erecting it that it will blow down during the first 
high wind. This can be prevented by following instruc- 
tions furnished by an expert tent raiser. 

Not only will such procedure save money and time 
but the chance of accident and injury to men is reduced. 

There are also numerous buildings that a contractor 
must erect for his own use — cement houses, shops, tempo- 



APPLICATION OF MODERN MANAGEMENT 105 

rary offices, buildings over plant, material bins, and build- 
ings for the men. For all of these there should be standard 
plans and bills of materials, with instructions as to how to 
erect them in the most economical manner. This means 
the saving of money both in materials and labor. If 
buildings are built in sections, diagrams and instruc- 
tions should be drawn up so that this work will be done 
expeditiously. 

Quantities of Work and Material Lists 

Attention has already been called to the need of list- 
ing all quantities of work to be done to prepare an estimate 
for the bid. These same lists can be used, after being 
checked up and revised, for carrying on the work. They 
can be placed on the plans and can also be given in the form 
of written instructions to superintendents and foremen. 

Material lists must also be made. These are sometimes 
furnished by the engineer for the owner. Such lists, when 
so furnished, should be dated and filed as a permanent 
record of the job. Copies of them should be made for use 
on the work. Then, too, from such lists other lists should 
be made up to use in purchasing the materials. This is 
necessary if judicious buying is to be done. Take for in- 
stance a job on which several timber structures are to be 
built and heavy timbers must be bought. The material 
lists, as drawn up for each structure, may make the prices 
run high; if they are re-grouped and placed with different 
mills or dealers, a large saving may be effected. So it is 
with many other lines of materials. By re-grouping the 
materials it is also possible to get better deliveries, especi- 
ally for those materials that may be needed in the early 
stages of the job. 

Routing Work 

To have work done economically it must be routed; 
the sequence of the details and the various classes of work, 



106 MANAGEMENT APPLIED TO CONSTRUCTION 

the handling of the materials, the distribution of the work 
and the number and size of the gangs needed must be con- 
sidered. This routing can be done by the engineering 
department, by a separate department, or the two depart- 
ments can be under the same head. 



Sequence of Work 

The task here is to eliminate all wasteful motions and 
repetitions of work, and so plan the details that one man 
or one set of men will not interfere with others. Every 
detail must be considered. Thus, in loosening earth with 
picks, the pickers must not interfere with the shovelers, 
and the loosening must be done prior to the shoveling. 
In charging a concrete mixer it must be decided which raw 
material will go in first, which second, etc. 

In fact, every detail of the various classes of work must 
be considered and the sequence of each planned and map- 
ped out. All of this information should be written down, 
either in the form of diagrams or instructions so that fore- 
men and inteUigent workmen can read and understand 
them. 

In addition, the sequence of the various classes of work 
must be planned. For example, first comes excavation for a 
concrete structure, then shoring to hold the earth, and then 
the concrete construction. It is by following the se- 
quence of work in this manner that sewer construction 
can be done at the lowest cost and in the most systematic 
manner. For instance, first the excavation must be done, 
then the pumping and shoring, the trimming of the bottom, 
the placing of the sewer, the back filling and the moving 
ahead of the plant. Each item of this work may have 
to be planned in detail and the sequence of the various 
items set down. Thus it may be possible on many sewers 
to complete a certain length each day. As it is with 
sewers, so it will be with other structures; all of these 
principles are applicable to any kinds of construction. 



APPLICATION OF MODERN MANAGEMENT 107 

Routing the Handling of Materials 

This work begins with the deliveries of all materials. 
It covers their storage and their rehandHng to machines 
and in place. It likewise covers the handling of materials 
to be prepared for use, such as the framing of timber, the 
cutting and fitting of steam or water pipe and similar 
classes of work. This work should be so planned as to 
handle all materials the minimum number of times, to 
prevent the changing of storage piles, and not to have ma- 
terials come upon the job before they are needed. As 
now practised by most contractors, some of this work is 
done well, but on most jobs there are glaring defects which 
can be prevented by proper forethought. Most of this 
planning must be done in connection with the distribution 
of work. 

Distribution of Work 

This covers not only the work of handling and placing 
materials, but also other work in which materials may 
not be used, such as excavation. This distribution means 
to have high priced men do only such work as may require 
their skill. Carpenters should frame timbers and not 
handle or carry them. This work should be done by un- 
skilled laborers. The high salaried man will frame more 
thousand feet of timber a day, while the laborers will 
handle as many thousand feet of timber as the high priced 
man and at a less cost. 

To illustrate: A contractor paying bridge carpenters 
$3.50 per day had two of them taking ties from a pile, 
sawing them to proper lengths, dapping the ties to fit over 
the stringer, and placing them in a new pile. The author 
was called upon to systematize this contractor's work. He 
at once added two laborers to this crew, and had a template 
made to mark off the ties, for length and the dap, instead 
of using a rule and square. The laborers served two gangs 
of two carpenters each. Their pay was $2.00 per day. 
Thus $4.00 per day in labor served carpenters receiving 



108 MANAGEMENT APPLIED TO CONSTRUCTION 

$14.00 per day. The laborers took the ties. and placed 
them right side up on a long bench made of timbers, each tie 
being so spaced by marks on the timbers that working on 
one did not interfere with the others. Six or eight ties 
were kept in place at all times for the carpenters. The 
carpenters marked off the ties, sawed them and adzed them; 
the laborers removed them as they were finished. Thus 
neither set of men interfered with the other and each did 
the work for which they were suited. 

By the old method the carpenters handled and framed 
sixty ties a day, containing 3,840 feet B. M. This was at a 
cost of 11% cents per tie, or $1.82 per thousand feet B. M. 
for framing and handling. By the improved method, 
one hundred and twenty ties were framed in a day by two 
carpenters. This meant a cost of 5.83 cents per tie for 
framing, to which was added 1.67 cents per tie for handling, 
or a total cost of 7.5 cents. The cost per thousand feet 
B. M. by the new method was 91 cents for framing and 26 
cents for handling, a total cost of $1.17. This meant 
a nice additional profit to the contractor. 

The carpenters' work was easier and the laborers did 
not have to work very hard, but this made an economical 
size of gang for this and other framing work. 

The same principle is applicable to machines and teams. 
It is common to see three or four men shovefing into a 
wagon, taking from eight to ten minutes to load, when 
from eight to ten men should load a wagon in three or 
four minutes or less. Thus the lost team time on three or 
four wagons amounts to quite a large sum in a day. The 
work should be so planned as to keep teams moving as 
much as possible. That is why loading devices, even 
for a limited amount of material, are economical. A small 
steam shovel may not work half the day, yet the cost of 
excavation may be small as compared to hand work, 
owing to the fact that the teams do their maximum amount 
of work. It can be seen that if the machine can also be 
kept employed the entire day, the cost will be further 
reduced. iThis calls attention to the service of machines. 



APPLICATION OF MODERN MANAGEMENT 109 

A man or two extra to serve a machine may mean increas- 
ing the output enough to reduce the unit cost of the work 
considerably. 

Number and Size of Gangs 

The number of the gangs to be worked, as previously 
explained, will be decided upon in planning the work, 
in making the plant layouts and in listing the quantities of 
work to be done. These factors will control, to some 
extent, the size of the gang, but other considerations will 
also affect these things. The job may call for a hundred 
men to use shovels, but this does not mean that all of 
these men will work in one gang. They can be divided 
into ten gangs, if necessary, each crew being composed of 
tw^o to twenty men. 

The size of the gang must depend on the service to be ren- 
dered to a machine or some particular section of the job, 
and the best unit by which to measure the work to be done. 
If cars of coal are to be unloaded, ten men can be placed 
in a car, but two men are likely to do more efficient work 
than ten will do in proportion. With five cars to be un- 
loaded, two men to a car will unload the coal quicker and 
cheaper than working ten men to a car and changing 
them from one car to another. 

In such cases the two men are paid for the extra work 
they do. Some advocate working one man by himself 
as much as possible, but the preference should be for two 
men, except in a few cases. Two men are not so likely to 
loaf as much as they would if working singly, and each man 
sets a pace for the other. For some work the size of the 
gang must be four, six, eight, ten or more, but it is well to 
keep the number as low as possible. This subject leads 
to the consideration of rewarding the men. 

There must be men enough on the job to finish it within 
the contract time, and in planning the gangs the cost of 
superintendence must be considered. There must be 
supervision enough to prevent men doing work the wrong 



no MANAGEMENT APPLIED TO CONSTRUCTION 

way, and skimping it. Yet the cost of supervision must 
not be excessive. One advantage gained from modern 
management is to reduce this item of cost. 

Instructions for Workmen 

Such instructions should be, as much as possible, in 
writing or printed and supplemented by sketches, drawings 
and photographs. Every known expedient to assist in 
this work of instructing men should be employed. At 
times, and under some conditions, the instructions must 
be oral. 

Instructions for Mechanics 

Mechanics and various kinds of artisans are among the 
higher classes of workmen employed by the contractor. 
As they are paid high wages, any misdirected or useless 
work done by them means a decided loss to contractors. 
Their work must be controlled at all times and a constant 
check kept on it. Most of these men can read and write, 
so that all instructions to them should be either printed or 
written. All general instructions and those pertaining to 
general methods, cost keeping and other features that will 
vary but little on different jobs, can be printed and cuts 
made either from drawings or photographs to illustrate 
them. Such instructions can be made up under different 
headings and put into book form. The various headings, 
such as Excavation, Concrete, Brick, Stone Masonry, Pav- 
ing, Tunneling, and numerous others can be employed to 
suit the classes of work a contractor may do. Each can 
be made into a separate pamphlet or all can be grouped 
together in one book. 

In this way all general methods of doing work can be 
described, and some details can even be given. Drawings 
and photographs should be used to make the instructions 
plainer as some men who are poor readers can learn much 
from the drawings and photographs. Another advantage 
gained from such instructions is the standardizing of all 



APPLICATION OF MODERN MANAGEMENT 111 

methods to prevent waste of money in estimating and in 
carrying on operations. In many cases, contractors have 
one man or one set of men make up their estimates for 
bidding. Then, if the job is secured, another set of men 
handle the construction. Thus more expensive methods 
may be used than those figured upon, resulting in a decided 
loss. A profit may be made on the job but that is not the 
question. The feature that the contractor should consider 
is whether all possible profit is secured. 

Then, too, jobs are sometimes lost in bidding by the 
estimates being higher than the actual cost of doing the 
work by the methods used by the contractors' managers in 
the field. The field forces and the estimating department 
must be in close touch. Modern management and close 
competition demand this and the best methods of keeping 
the two in accord is by standardizing every feature of 
construction that will admit of setting and maintaining a 
standard. 

There are many details of construction that will vary 
on different jobs. For many of these special instructions 
must be issued on cards or in the form of bulletins. Those 
on cards can be accompanied by sketches or drawings. 
Bills of materials can also be shown on the cards as well as 
other data that will assist the mechanics. A sketch is a 
rough drawing made either in pencil or ink, not to scale, 
but all measurements are placed upon it for the mechanics 
to read. This sketch may be a side or end view showing 
some detail only, it may show a complete unit of the work, 
or possibly an isometric view will give a general idea only. 
All sketches should show measurements. 

By means of a sketch and written instructions a card will 
show a stonecutter how to cut and dress a piece of stone 
of a given size or a number of stones of one size or varying 
sizes, if of the same shape. The number of stones of each 
size can be listed on the card. A card can be used to in- 
struct a carpenter how to cut up and frame a piece of timber 
for a structure or form. All of these things should be made 
in the office. The sketches and instructions will show how 



112 MANAGEMENT APPLIED TO CONSTRUCTION 

to frame timbers economically to suit the sizes ordered. 
Without such instructions much timber may be wasted. 
This is especially true of form work. 

Instruction cards also serve another purpose. As a 
mechanic works from them he can list, in space provided, 
the number of pieces produced in a day, or he can give the 
total time used in carrying out the instructions, if more 
than a day is used. Thus a cost record that may prove in- 
valuable is obtained. Then, too, the speed and character 
of work done by different mechanics can be gauged and it 
becomes possible to devise means of making all men do 
their work up to the same standard and with about the 
same speed. 

All such cards and records should be filed under a good 
system so that they can be found easily for they may 
be needed for estimating or to save labor in getting 'up new 
cards for other jobs. Many of them may only have to be 
copied for use on another job. For this purpose, cards 
can be made up in series showing various steps in doing 
certain kinds of work. Thus for timber, one series of cards 
may show how the framing is done; another set will show 
how to assemble the different pieces; a third will show how 
to take down the various parts and move them, if this is 
necessary. Such cards may mean a little extra cost in 
office work, but the saving on the job will offset this many 
times. 

Instructions for Common Laborers 

For use by uneducated laborers, written or printed in- 
structions are valueless. Such men must be taught by 
a practical demonstration. It is possible, however, to 
have most of these instructions printed or written so that 
superintendents and foremen can understand them and, 
after becoming familiar with the details, teach the laborers 
the essentials. Some intelligent workmen who can read 
and who have influence with their fellows can assist in 
such work. Such instructions must be given to the ma- 



APPLICATION OF MODERN MANAGEMENT 113 

jority of the men orally. Photographs or cuts are a decided 
help in this as they show the right and the wrong positions 
and movements of a m.an's body. The tools used in work- 
ing may be pictured^ too. The position of a man's feet 
at his work is always of importance. This can be shown to 
both the foremen and men by diagrams. These features, 
as they apply to shoveling and the use of shovels for many 
purposes have been covered in the previous chapter. As 
it is with shovels, so it is with all other tools and machines. 

Men must be so managed that they will be continuously 
at work during the regular working hours. The ordinary 
man in the employ of a contractor works about ten hours. 
On public works this is reduced by law to eight hours. 
To consider this question we will take the man on public 
work laboring 480 minutes a day. When he starts to work 
in the morning he must find his tools and obtain instructions 
from his foreman, who is a busy man at the starting hour 
trying to get a large number of men to work promptly. 
The workmen may be delayed in waiting for teams or in 
waiting to be served. There are many reasons why every 
man does not start to work promptly on the stroke of 
the clock. About fifteen minutes is generally wasted in 
getting started. In some cases the time so wasted may be 
less, but in many cases it is more. Foreigners are very apt 
to waste time purposely in beginning work. 

At noon, men are on the alert for the time to stop to eat. 
This causes a waste of time — seldom less than five minutes. 
In starting work again, time is wasted (about ten minutes 
on the average) and at quitting time about ten minutes 
are lost. Thus during the day an average of forty minutes 
is lost starting and stopping work and this amounts to 
one-twelfth of the man's working time. With other 
wastes of time during the day it is safe to say that at least 
an hour, or one-eighth of the man's time, is lost. If he is 
excavating earth and this time could be conserved, each 
man would excavate another cubic yard or more. 

Then, too, in order to keep men busy, they must be 
driven. An unwilling man seldoms puts forth his best 



114 MANAGEMENT APPLIED TO CONSTRUCTION 

efforts. For these reasons on most construction, men 
should be worked in small gangs so that foreman can give 
them the proper supervision and keep them busy. This 
adds to the cost of the work. In earth moving alone the 
writer has frequently seen the foreman cost run from 10 
to 25 per cent of the total. 

Little is being done by the majority of contractors to 
better these conditions, yet the remedy lies at their doors. 
Men can be paid on such a basis that the more work they 
do the more pay they receive. Thus every man, espe- 
cially if he is guaranteed an ordinary day's wage, will put 
forth extra efforts to earn an increased sum. 

The Basis For Rewarding Workmen 

Every contractor has a basis of rewarding workmen. 
The usual one is to pay them some hourly, daily, weekly 
or monthly wage. In some respects this is fair, especially 
to the workmen, but the employer may suffer as some men 
will do no more than they must in order to hold their jobs. 
To compel men to put forth their best efforts, both mental 
and physical, there must be a guarantee of the ordinary 
wage for the regular work with incentive for extra work. 
There are, today, a number of methods for this, but the 
one best suited, in the author's opinion, to construction 
work is that known as the ^'Task and Bonus System."* 

Usually the rewarding of the men comes under the time- 
keeper, the paymaster and the superintendent. One or 
more men may occupy these positions. These men make 
up a department that can look after this work and the out- 
side cost keeping. Their work is most important to any 
organization and their ability to carry out contracts is 
based upon the workmen and how they are handled. 

Tasks and Bonuses 

Tasks cannot be set offhand. Accurate records must 

first be kept of amounts of work done and their costs. All 

* See paper before the American Society of Mechanical Engineers by 
H. L. Gantt. 



APPLICATION OF MODERN MANAGEMENT 115 

conditions must be considered. With adequate infor- 
mation it is possible to set uniform and equitable tasks. 
Such tasks will be the basis of deciding upon wages. 

Deciding Upon Wages 

A fair basis to both the employee and the employer 
must guarantee to the average workmen a living and equi- 
table wage. This once established, the best workmen 
can be induced, by means of a bonus, to do a greater amount 
of work and thus earn for themselves an increased com- 
pensation. They will at the same time earn for the con- 
tractor an additional profit. The contractor must be fair 
in this. He must be willing to share such increase of 
profits v/ith his workmen, including machine runners, 
foremen and superintendents. Tasks once set should 
not be changed on a given job as the changing of such things 
means the loss of the confidence of the men, who will then 
condemn the entire system. A contractor would not hke 
to have his prices reduced after making a contract with the 
owner, so he must realize that the workmen will not stand 
for a reduction of the money they have been earning. 

The tasks set, and the bonuses to be guaranteed, must 
vary with different classes of work and upon different 
jobs. Tasks can be set on an hourly basis, for a day, 
a week or a month and, on short jobs, for the job. The 
office work is not necessarily increased by this method, 
but the unit costs of all work will be materially reduced. 
Even the office and superintending forces can be placed 
upon the same basis. 

One effect of this method of rewarding workmen is to 
get rid of all workmen who are not bonus earners. They 
do not have to be discharged; most of them will leave of 
their own accord or their fellow workmen will cause them 
to leave. On the other hand, the best workmen within 
reach of the contractor's work, due to the fact that they 
can earn an increased compensation, will be attracted to 
the job. Soon all men become bonus earners, the organi- 



116 MANAGEMENT APPLIED TO CONSTRUCTION 

zation is materially strengthened and the contractor reaps 
a decided benefit. 

Further Incentive To Workmen 

Instructions, tasks and many other subjects outlined in 
the principles of modern management all serve to increase 
the output of men and machines, yet these things likewise 
have a tendency to make a man an unthinking machine 
and rob him, to some extent, of his individuality. If this 
is done entirely, there results an injury to both the work- 
men and the contractor. To prevent such damaging ten- 
dencies, a further incentive must be held out to the men 
to make them think and to give to the contractor not only 
the results of their new ideas, but also the knowledge that 
all the men have gained during their lives. 

The organization is benefited by any suggestions or 
knowledge that the employes possess or may gain while car- 
rying on their work. For such information there must be 
some basis of rewarding those who may give the con- 
tractor helpful suggestions. When such things have proven 
their merit, they must be incorporated into instructions 
to the men. 

A committee made up of workmen and representatives 
of the contractor can decide upon the value of all such sug- 
gestions or ideas, and setting a cash price upon them, the 
wide-awake employee can be paid an extra reward. This 
will give all employees an incentive to think and keep think- 
ing and attempting to devise new methods to increase 
their own output and that of machines. This may be in 
connection with the work that a man is doing himself 
or with that being done by others. 







I 



CHAPTER VIII 
COST KEEPING AND BOOK-KEEPING 

Twenty years ago few cost records were kept. Con- 
tractors did not seem to realize their value. Then came 
a great wave of cost keeping and cost data. Many 
engineers and contractors were carried away with a seem- 
ingly new subject and enthusiasts talked and wrote of 
costs, believing that a knowledge of costs constituted 
everything necessary to success in contracting. Some 
young men even believed that a book on cost data and a 
few thousand dollars were all that was needed to make a 
success of contracting. 

Then came the re-action. Costs were not followed so 
closely and some engineers and contractors began to scoff 
at cost keeping and cost data. Notwithstanding their 
beliefs to the contrary cost keeping is essential to modern 
management. 

Costs and Prices 

First, one must understand the distinction between 
costs and prices. Costs are either real or estimated, 
and show what expense is involved in any work. A profit 
is never shown in a cost. Prices, though, should show 
profits. In other words, cost plus profit gives price. Un- 
fortunately for some contractors this is not always the case. 
Published costs generally have some value. Pubhshed 
prices of construction work seldom have any value save 
to make comparisons as to how contractors may bid or 
look upon work from different view points. 

If bids are unbalanced, even prices will not serve this 
purpose. So long as units of work remain the same, prices 
of labor and supplies are known and methods used are 

117 



118 MANAGEMENT APPLIED TO CONSTRUCTION 

described, a list of costs possesses some value. Costs 
kept by one contractor possess value to others, but their 
greatest value is to those who compiled them. 

Cost Keeping 

Many engineers and contractors do not seem to grasp 
the full significance of cost keeping. Some seem to think 
it is necessary to compile a great mass of data. Others 
believe only a few examples are needed, showing extremely 
low costs or very high ones. Others take a few records, 
calculate unit costs from them and consider, if they are 
favorable, that all their work is being handled in a satis- 
factory manner. 

A few contractors, after obtaining complete records 
of a few jobs, beheve that cost keeping is no longer neces- 
sary. Some say the greatest value of cost keeping is 
that it enables one to become an encyclopedia of costs and 
to be able to use them in estimating upon new jobs. 

This is a valuable use of cost data, but its greatest value 
is in eliminating wastes from the work being done. Study 
of costs enables contractors to learn the most economical 
methods of carrying on construction, and decide upon the 
details of management. 

Thus from cost keeping we obtain cost records, and 
this recording of costs is an endless task, going on hour 
after hour, day after day, month after month, and job 
after job. The many features of cost keeping, as applied 
to management rather than to estimating, will be discussed 
in detail. 

Cost Forms 

A contractor doing small jobs and a limited amount of 
work under his own supervision can keep costs in a memo- 
randum book or in a time book. When much work is 
being done — more than one man can look after — costs must 
be kept on forms for that purpose. For large operations 



COST KEEPING AND BOOK-KEEPING 119 

No. DAILY EEPORT. ^I9i2 



EXCAVATING 


Monday 


.aborJ 
ers 


Per 

Hour 


Total 
Hrs. 


Yards 
Dirt 


Cost 
pr.yd. 


Yds. 
Rock 


Cost 


No. 
tms. 


Tot. 
Hrs. 


Cost 


Yds. 
shovl 


Yds. 
Wagn 


Yds. 
scrp. 


Powder 


Tuesday 






























Wednesday 






























Thursday 






























Friday 






























Saturday 






























Sunday 






























Weekly Exp 






























Weekly Rec 






























Monday 


No. 
Lab. 


c 

Av.pr. 
Hr. 


N ( 

No. 
Hrs. 


^B E 

Bbis. 
Cem. 


T I : 

Ins. 
Cht. 


r G 

Yds. 
Sand 


Bbis. 
Wat. 


Cst. 
Tnns. 


Gasol 


Steanr 


Xo Feet 
wlk. 
Buiit 


Ft. 
Crsn. 


Cu.YdB 
other 
wrk. 




Tuesday 






























Wednesdaj 






























Thursday 






























Friday 






























Saturday 






























Sunday 






























Weekly Exp 






























Weekly Rec 
































FOREW 


AN 


F IM»I S 


TILING 


Mod 




No. 
Lab. 


Cst.pr 
Hr. 


No. 
Hrs. 


Cst. 
Stks. 


Linl. 
Ft. 


Sqr. 
Ft. 


6i 


n. 


Sin. 


10 i 


n. 


12 in 


15in 


18i 


n. 


24 i 


n. 


30 


n. 


Tues 










































Wed 










































Thurs 










































Fri 










































Satur 










































Sun 










































W Exp 










































W Rec 










































Monday 


GE 

Repair 


NEB 

T. 
Keepr 


XL 

mgin' 


EXI 

Watch 
man 


Rent 


;e 

TeiaOff 
SiuppUe 


Ins. or 
Leg. 
Exp. 


Int. 
and 

Discoun 


Tr.Ex 


G 

Supt 


RAN 

Am. 
Mat. 


D T 

Am. 
Rec. 


OTA 

Tot. 
Ex. 


L 

Recpts 


Tuesday 






























Wednesday 






























Thursday 






























Friday 






























Saturday 






























Sunday 






























Weekly Exp 






























Weekly Rec 































Fig. 3. — A form covering too many classes of work. 



120 MANAGEMENT APPLIED TO CONSTRUCTION 

such forms can be printed, but where only a limited number 
of forms are used, the forms can be made with a duplicating 
machine, at a small expense. It is also advisable when 
making new forms to try them out and see if changes are 
necessary by first printing a supply upon some duplicating 
machine. When the form is found to be satisfactory, it can 
be printed. The sizes of forms and other details have been 
covered in The Economics of Contracting, Vol. II. Such 
forms can be devised to cover a variety of work, but this 
means to have large forms and many blanks left on them 
each day, thus wasting much printing and paper. It is 
better to have small forms meant for only one or two classes 
of work. If different men do different parts of the same 
class of the work, then the reports of each man should be on 
separate forms. After the reports are turned into the office 
the different operations and their costs can be assembled 
on a single form by a clerk. 

The form (Fig. 3) is arranged for four classes of work and 
space is provided for general expense. While this is called 
a daily report, space is provided for six days. Hence it is 
a weekly report. The amounts of the general expense items 
should never be known to the men, as these overhead 
charges are confidential, and, if kept secret, the contractor's 
costs will not become known to his employees or competi- 
tors. This form cannot be commended. It does not give 
enough detail as a daily cost report and too much is shown 
for a summary. In each case it entails a large amount of 
clerical work to obtain unit costs or even total costs. 

The form shown in Fig. 4 is not a good one. The labor 
side is little more than a daily time sheet or pay roll with a 
distribution column. If twenty names are listed and six 
classes of work are performed the time of each man must 
be taken from the sheet and the various items calculated. 
The amount of each class of work done is not listed. It is 
not possible, therefore, to figure unit costs from this form. 
The same costs could be kept in a time book by using 
symbols to show classes of work. 

By placing the materials on the same form it can be seen 



COST KEEPING AND BOOK-KEEPING 



121 



i 
1 


z 
o 


UJ 




1 


























UJ 


1 








































I 




"S " •- 




















1 
1 






















1 




















1 
1 

'I 
1 




















z 
1 

2 


a: 
o 

2 


1 










































■s 
























W a 


5 


1 

1 






















III 




















"32 

^1 




















■I 

s 

.■2 

w 






















u 


^ 




s 

























122 MANAGEMENT APPLIED TO CONSTRUCTION 

that if the men are doing excavation, and do not use any 
materials, and should none be received on the job on that 
day, half the report is unnecessary. Labor reports and 
material reports should not be combined. 

Separate Blanks for Each Class of Work 

It is the author's opinion that too much stress cannot be 
laid upon the importance of keeping separate blanks for 
each class of work, especially on large jobs. In addition to 
the value of the actual cost records it is thus possible to see 
who is responsible for high costs. If the reports are 
grouped it is not always possible to do this and the em- 
ployees handling such reports will learn the costs of only the 
work they do and will not know what is being done by other 
forces. 

It must be remembered that cost keeping does not end 
when such records are made in the field. Aside from the 
field work there must be some office work to complete the 
costs. For some classes of work costs must be grouped to- 
gether in the office, after which they are analyzed and 
recorded as permanent records. Cost forms may be made 
up as punch cards or they may be upon instruction cards 
issued to foremen and workmen. This makes it necessary 
to keep costs in detail on separate blanks. 

It is not necessary for men to take cost forms into the field 
except when the forms are made up as punch cards or 
instruction blanks. Ordinarily the men know what facts 
must, be reported and these can be jotted down in a cheap 
memorandum book. The form can then be filled in at the 
end of the working period. Thus the memorandum book 
may become soiled, but the report blank is kept clean, 
which would not be possible if it were carried around over 
the job. 

Who Should Keep Costs? 

This question is sometimes asked by contractors, but 
more frequently by their men. The answer is that the 



COST KEEPING AND BOOK-KEEPING 123 

men should, as much as possible, keep the costs. A team- 
ster doing hauling should make his records of time, mileage 
and loads of various materials hauled. A carpenter fram- 
ing timber should show the work he does on his instruction 
card. A drill runner should record the holes drilled as well 
as the lineal feet of and time on each hole. A foreman in 
charge of a crew working with picks and shovels should 
report the force at work, the amount of work done and the 
cost. This does not mean that these men keep time, for 
timekeeping should be distinct from cost keeping. The 
operator of a machine must make a report of his and the 
machine's work. 

It is not always possible to have costs kept in this manner 
as some competent workmen can neither read nor write. 
Also, some write so poorly that their reports are unreadable. 
It is necessary to render assistance to such men and this 
can be done by the time keeper, a material man or clerk or 
even by the superintendent. Some judgment must be 
displayed in having costs kept, especially under adverse 
conditions. 

At times it is said that an untrained man cannot be 
expected to do clerical work. But it seldom takes more 
than a few minutes to fill in a cost keeping blank and any 
man should be able and willing to do this. One contractor 
is known to have said that he did not want a man in his 
employ who had so little interest in his work as to refuse to 
do so small a task. Cost recording is as much a man's duty 
as it is to do his other work. 

Material Reports and Stock Books 

In addition to records showing costs of the work of men 
and machines, there must be kept, on forms provided for 
the purpose, a record of all materials and suppHes received 
and used. From these records invoices are checked and 
costs of materials and supplies are figured. Then too, 
from these same reports, stock record books are kept up to 
date to show just what materials are on hand each day. 



124 MANAGEMENT APPLIED TO CONSTRUCTION 

In this manner materials and supplies can be ordered ahead 
so that delays need not occur. In this way the contractor 
avoids keeping excessive amounts of materials on hand 
that may not be used for some months. 

The stock books tell instantly the amount of materials 
and supplies on hand. Only a few minutes daily need be 
devoted to keeping these records correctly. And keeping 
such records makes frequent inventories unnecessary and 
saves hours spent in going over reports. This means 
so much work that a guess may be made to obtain the 
amount quickly — and such a guess will in all probability 
be incorrect. 

If only a small amount of materials and supplies is used 
on a job; a time keeper or some other employee may have 
time to keep the record and handle the reports. If, how- 
ever, the job is a large one and thousands of dollars worth 
of supplies and materials are used, one or more material 
men or clerks may have to be employed. Contractors 
lose much money through the waste of materials and sup- 
plies. Therefore the work of material men is quickly paid 
for if they properly attend to their duties. 

If blanks are used to show the amount of materials and 
supplies used daily on a job, these items do not have to be 
listed on a cost keeping form, for it will be necessary to 
show only the total amount (in dollars) on the cost records. 
The original material reports can be consulted for details. 

Cost Records Should be Kept in Detail 

Many engineers and contractors, though strong advo- 
cates of cost keeping, do not believe in keeping costs in 
great detail. If costs of concrete are kept they may- 
record the labor materials, and form costs and the general 
items of expense. If such costs were to be used for esti- 
mating only, these details may be sufficient in most cases. 
If, however, the costs are meant to control waste of labor 
and materials and to be used in deciding upon better and 
more economical methods, these costs cannot be kept in 



COST KEEPING AND BOOK-KEEPING 125 

too great detail. Thus, cost keeping for concrete construc- 
tion should show the amount and price of cement, sand, 
and the aggregate. The labor records should show the 
cost of getting ready to mix and place concrete in the 
morning as well as the cost of cleaning up after the day's 
work. The cost of handling the cement bags, and of 
feeding the mixer, the labor cost of operating the mixer, 
and the prices of gasoline, oil and waste should be recorded. 
And the cost of transporting and placing the concrete 
must not be overlooked. 

On form work the contractor should keep a record of 
the cost of materials as well as of labor in framing, erecting, 
wrecking and cleaning the forms. The records must 
show whether the forms have been used before and how 
often. Form costs may be kept to show the cost per thou- 
sand feet of timber used, the cost of forms per cubic yard 
of concrete or per square foot of surface. It is always 
necessary to keep form costs by at least two of these three 
methods. 

With costs recorded in such details it becomes possible, 
by daily comparisons, to detect at once any waste of any 
kind of material. 

The same is true of labor. It may be seen that an hour 
a day is wasted in getting ready to mix in the morning 
and in cleaning up at the end of the day. By study this 
waste may be reduced to less than one fourth of the time. 
The cost of feeding , a mixer may be excessive. If the 
costs are lumped this fact may never be known. With 
detail costs, however, the contractor can see at a glance 
where he is losing money or neglecting a chance to increase 
his profit. 

Fig. 5 is a form for excavation which gives detailed in- 
formation about the work. 

What is applicable to concrete may also be applied to 
all other classes of work. Excavation, paving, pipe laying 
and etc. To have the costs in details so that the results 
can be used at once the units of work done must be 
reported. 



126 MANAGEMENT APPLIED TO CONSTRUCTION 

These units will vary on different kinds of jobs and 
for different classes of work. In some cases it may be 



JOB. 



STA. NO. 



.WEATHER- 





GRADING 

HAND 


REPORT 

WORK 






Forces 




2 


^ 


4^ 

1 




\i 


Remarks 


Foreman 






















Pickers 




















Shovelers 




















Dump Men 




















Extra Men 






















Drillers 






















Drill Runners 






















•« Helpers 






















Blasters 






















Loaders 






















Boys 






















Whe'lbarrows 






















Carts 






















Oars 






















Wagons 






















Explosives 






















Scrapers 






















Plowing 






















TOTAL 























Haul. 



Lineal Feet- 



Number Blasts 



-Feet Earth Rock 

Cubic Yards - 

A. M. 



Cost 



P. M. 

.Lineal Foot 



Cubic Yard 



Number Stumps Blasted- 



Foreman 
Fig. 5. — A well-devised form for hand grading or wagon roads. 

necessary to use several different units as in form work for 
concrete and in road and street construction where the 



COST KEEPING AND BOOK-KEEPING 127 

cubic yard, lineal foot or square yard may have to be 
used. 

A man day or a machine day is one kind of a unit, but 
these will be expressed in other units. For instance 
a man day for shoveling earth may be expressed as ten 
cubic yards, so in the end we get to the cubic yard basis, 
which is the real unit of work done. To record such details 
may mean more work, but it is essential. Just how essen- 
tial may be emphasized by the following quotations from 
a business magazine. 

^^A business concern is a ship ploughing through waters 
of competition. The rocks which threaten are Careless- 
ness, Laxity, and Waste. The ship sinks . . . the con- 
cern fails . . . not because of the big holes staved in the 
sides. These are apparent. All hands rush to them, and 
danger can be met and averted. It is the little leaks, the 
scarcely perceptible cracks, which wreck the ship. These 
are overlooked. In time they cause the whole ship to be 
submerged. Stop the little leaks. Watch for them. Keep 
the machinery well oiled,, and make all hands work in 
harmony. Let the man in the pilot house have absolute 
power. Then steer a straight course for the port of effi- 
ciency . . . which is the Harbor of Success.'^ 

A detail cost keeping system is the only means of dis- 
covering these leaks and placing the man in the pilot house 
(the contractor) in control. With the details before him, 
he can steer towards the harbor of 100 per cent efficiency. 

Signing Reports 

It is necessary to make men sign all of their reports as 
this fixes the responsibility for each report and the work 
that has been done by the man signing it or his crew. 
Also, it causes a tendency for a man to make a more 
accurate and honest report than he would if he did not 
have to sign the statement. Most men will refuse to 
sign a false statement, but they may not hesitate to make 
a false statement to which they are not compelled to affix 
a signature. 



128 MANAGEMENT APPLIED TO CONSTRUCTION 

The most important reports should not only be signed 
but they should bear the signature of the general foreman 
or superintendent to show that he considers them correct. 
Provision should be made on every cost keeping form and 
daily report for one or two signatures. 

A Complete Cost Keeping System 

A complete cost keeping system must cover every 
feature of a job. It must cover more than costs, for the 
costs, if they are to be used to eliminate wastes, must be 
supplemented by minute daily records of the operation 
of machines. Thus, a steam shovel may load three 
hundred cars in a day, yet be idle three hours. Cost 
records may not show this but a daily report showing at 
what time each train went under the shovel and the time 
it left, as well as the breakdowns of the shovel, will tell 
whether the machine has been busy throughout the day. 
The same thing applies to other machines. All lost time, 
no matter how caused, must be accounted for. This is 
a feature that plays a prominent part in modern 
management. 

A complete cost keeping system must include some 
forms by means of which the accuracy of the regular 
reports can be checked. Otherwise the recorded costs may 
be erroneous. 

There must also be checks for honesty. Some men 
may steal. Others may not be dishonest yet they would 
willingly deceive their employer. Such checks as these 
are almost obligatory. 

These forms used may seem to be useless to those who 
have to make them out, yet they are necessary and fit 
in well with the system. 

To be of the greatest value, costs should be available and 
analyzed daily. To have this done quickly and along the 
same lines daily, a cost keeping system must include a 
number of sheets upon which all of the costs are assembled, 
totaled and analyzed. Thus many deductions can be made 
and discrepancies discovered. 



COST KEEPING AND BOOK-KEEPING 129 

From the analyzation sheets the total costs can be re- 
corded so that a comparison can be made with the adopted 
standard. This is very important and without such a form 
a cost keeping system is not complete. It makes the data 
easy to refer to and the results can be used constantly for 
comparison. 

Such comparisons will help to stop the little leaks as well 
as the big ones and will aid the contractor in adopting the 
methods that will be most hkely to give the greatest 
efficiency. 

Establishing Tasks and Bonuses 

By studying the cost keeping system and daily report 
blanks it is possible to set tasks and offer men a bonus for 
extra work. A few records will not serve the purpose. 
There must be records covering a long period of time — a 
period of depression as well as inflation, times when men 
and machines work their best and their worst. It is then 
possible to set a fair task that can be maintained through- 
out the job. 

Book-keeping 

It can be seen that cost keeping is not book-keeping, but 
is supplementary to book-keeping. 

Book-keeping for a contractor can be very simple. All 
book-keeping is similar, no matter what kind of a business is 
being operated. In contracting, however, there is no sell- 
ing expense. Thus there are but two or three accounts to 
be kept. The largest end of book-keeping for a contractor 
is in recording expenditures, and these are easily handled if 
properly systematized. If the work is done daily, the 
book-keeping of a large business can be handled by one man 
in a few hours. 

Even with branch offices and a number of different jobs 
going on at the same time, there need be but a few books. 
Yet it is possible to take off a trial balance daily. Thus 
a contractor, knowing his finances, can arrange, days and 
weeks in advance, for such matters establishing and main- 



130 MANAGEMENT APPLIED TO CONSTRUCTION 

taining excellent credit. Most contractors balance their 
books but once a month, while some only at the end of a 
job. It is quite a task with the ordinary method of book- 
keeping to take off a trial balance. It is this fact, coupled 
with the chance of making errors, that deters most book- 
keepers from taking off trial balances frequently. Banks 
take a balance daily, and do it quickly. The ordinary 
bank handles many items daily — many times more than 
does the average contractor. Therefore, if it is possible for 
a bank to take a trial balance daily, it should be possible for 
a contractor to do the same thing. By doing so it is 
possible for a contractor to supervise his finances as easily 
as he keeps in touch with the unit cost of his work. He 
can control his expenditures as well as his income, and 
arrange with his banks for help if it is needed. This can be 
done whether the contractor is doing one job or a dozen 
jobs scattered over several states. 

With the proper book-keeping system there is not a 
duplication of accounts, even if a number of different jobs 
are being carried on away from the main office. The sub- 
offices do but little book keeping, and pay out only such 
money as is absolutely necessary. All large payments 
should be kept under the supervision of the contractor or 
his immediate representative. 



CHAPTER IX 

SYSTEMATIZING CONSTRUCTION 

With the aid of costs and with a general knowledge of 
construction, a system can be devised for carrying on 
contract work. It is possible to devise a system without 
costs or cost keeping, but such an arrangement will not 
prove so efficient. It is not possible to devise a perfect 
system — one that is one hundred per cent efficient — but 
any one experienced in construction can devise a system 
that will be of great value. From time to time the system 
can be changed and strengthened to make it more and more 
efficient. 

Books of Rules 

Modern system must be founded on rules, yet a book of 
rules is not a system, in spite of the fact that a contractor's 
book of rules has been published and advertised as a 
system. The rules lead to system, but system must em- 
brace all those features that are advocated under the title of 
modern management. By description, concise rules and 
photographs, the foremen must be told how to do their 
work. The office work, as well as the field operations, must 
be described. The cost keeping must be explained and 
the care and operation of machines emphasized. 

Some of these things can be covered in rules. 

Rules are a great help to contractors as they save much 
time and worry. Rules can govern the employment of 
men. Any foreman, mechanic or machine operator apply- 
ing for a job can be allowed to read the rules. Thus he is 
advised, before beginning work, how he must govern him- 
self, what his duties are to be, and what is expected of him. 
If he agrees to obey the rules he cannot object to making 
out reports and performing other duties. 

131 



132 MANAGEMENT APPLIED TO CONSTRUCTION 

The rules will also tell the men who can hire laborers 
and mechanics and under what conditions, and when men 
can be discharged and who is to pay them. In fact all 
rules and regulations governing the employment and hand- 
ling of men should be listed in the first part of the book of 
rules. As examples of such rules the following are given. 

Rule 5. — Laborers can only be employed by the superin- 
tendent of the job. 

Rule 6. — A foreman can discharge a laborer for insub- 
ordination or fighting. If the laborer does not seem to 
be proficient in the work he is doing the foreman must 
promptly call the superintendent's attention to the fact 
and abide by the latter' s decision in the matter. 

Then should follow rules covering daily reports and cost 
keeping. In this part of the book copies of the forms 
themselves can be given, properly filled out, so that new 
men will have a sample to guide them. Rules should also 
be given telling when these reports should be made out 
and turned in, so that all such data will reach the con- 
tractor's office promptly. If necessary, time keeping and 
expense accounts can be covered in the same section. 
The following rule serves as an example. 

Rule 32. — All daily reports must be handed to the time- 
keeper at the office within an hour of stopping work. This 
applies to both day and night crews. 

The next part of the book can be devoted to the organiza- 
tion, showing, by diagram, and rules, who is in charge of 
different work, and to whom each employee reports. Such 
rules prevent friction. 

It is possible to show the nature of an organization by 
charting it as on page 133. This diagram is of a large 
corporation, and follows somewhat the lines described by 
the author in The Economics of Contracting, Volumes 
I and II. 

A second organization is shown in the diagram, on 
page 133. This can cover either a private contracting firm, 
an individual organization, or a chartered construction 
company. 



SYSTEMATIZING CONSTRUCTION 



133 



President 
Board of-^ 
Directors 



Legal j General Attorney 

Dept. 1 Employees Compensation 




Local Attomeya 



Stock Books 
Record Books 
Office Clerks . 



Seal 



General 
Manager 



Auditors 
Treasurer J Bank Accounts 
Book-keepers 

Finances and Book-keeping 
Paymasters and "nme-keeping 
Purchasing Department ( Store-keeper 
(^Material Men 

Estimating ^ 

Cost-keeping 

(Shops 
Foreman 



Engineering 



Job Superintendent 



Mechanics 
J Machine 
Runners 
Laborers 



Legal Affairs 



J Insurance 

I Government Reports 



Fig. 6. 




Fig. 7. 



134 MANAGEMENT APPLIED TO CONSTRUCTION 

A third plan of organization is shown in Fig. 8 on 
page 134. 

These are given as samples only, and are not recom- 
mended for any contractor. It is advisable to devise an 
organization chart for each firm to suit its particular work. 

The next section of the rule book can govern the care 
of tools and plants and their maintenance. For instance, 
one rule should state that ^^ sharp-edge tools must not be 
thrown into a chest, but must be placed in racks provided 
for them.'' (The care of tools and machines is discussed 
under another section in this chapter.) 

Contractor 

I I 



Office 



General Manager 



Book-keeping Cost- Purchasing 
keeping I 



■Job Supt. 



Time-keeping - 
Pay Master -- 



• Time-keeping 
Cost-keeping 



Store-keeping 



Boarding 
House 



Shops 



Mechanics 



Machine 
Runners 



Laborers 



Fig. 8. 



The next section should cover '^safety first" and should 
include all rules and instruction as to how machines should 
be guarded, and the care that should be exercised to prevent 
accidents. Also, in this section, directions can be given 
as to rep'orts of accidents. The rules should also explain 
that compensation to injured men has been provided for 
according to the state law. 

The next section should be taken up with general rules 
governing the work, so as to prevent useless labor being 
performed and materials wasted. For example: 

Rule 87. — Foremen shall not allow men to walk when 



SYSTEMATIZING CONSTRUCTION 135 

shoveling, or have materials dumped upon the ground so 
that they will have to be rehandled. 

Rule 92. — Stone, coal and similar materials will be 
dumped upon boards or into bins to prevent waste. 

Some blank pages should be provided in the book so 
that special rules governing some particular job can be 
written or pasted in the book. For instance : 

Rule 119. — Under no circumstances will an employee 
be allowed to cross the railroad tracks on this job. All 
employees must go under these tracks. Anyone, even 
the superintendent, who crosses the railroad track will 
be discharged. 

These sections should for most classes of construction, 
complete the book of rules. 

System on Contracting 

A system for carrying on construction can be made up 
in the form of a book, or it can be mapped out on sheets 
of paper, or even can be memorized. The most common 
practice is to have the contractor and his general manager 
memorize it. For a limited amount of work and with 
only one man in charge of all operations, the last named 
method can and does give fair results. Such a system 
is always changing. Things are forgotten. Untried and 
unsuccessful methods are used. Mistakes are repeated. 
Each new thought is tried, without mature reflection. 
Nothing is certain from day to day. 

When a system is mapped out on paper better results 
can be obtained, for not only will a great deal of time 
be given to the subject, but also deep and mature thought. 
Consequently the results are likely to be better. With 
the papers convenient to consult, the system will be followed 
from day to day, and with the experience gained, many 
improvements will be made. Thus each year more 
economical results can be and are obtained. A system 
not outlined on paper does not improve so rapidly nor are 
the improvements necessarily permanent. 



136 MANAGEMENT APPLIED TO CONSTRUCTION 

For a limited business and for only a few classes of work, 
a system need not be very extensive, and only a few sheets 
of paper may be needed to cover a contractor's business. 
However, every contractor hopes to make his business 
grow — to obtain more and larger contracts. Hence, his 
system must keep pace with his business. Thus he will 
soon have many loose sheets of paper, that will be difficult 
to handle and will become disarranged. There is always 
the chance of some sheets being misplaced or destroyed. 

For these reasons it is advisable to use a book for record- 
ing the system devised. For a limited business only one 
book may be needed. As the business grows it may be 
necessary to have several copies. These need not be 
printed, but can be written out or reproduced on the 
typewriter. In this form it will always be possible to use the 
books for quick reference. A loose leaf binder can be used, 
which makes it possible to change, take out or destroy old 
leaves and add new ones. 

Using this method, it is possible to have different books 
or binders for different classes of work. The first section 
can be devoted to the general system of carrying on any job 
or the different classes of work. There can be sections 
covering excavation, concrete construction, highway work, 
sewer construction and other lines. The section covering 
the general system can be duplicated in each binder, but 
there is seldom need for the various classes of work being 
duplicated in the same book. If a business becomes so 
extensive as to demand many copies for constant use, and 
the system is well devised, it may be advisable to have the 
books printed. The same remarks are applicable to the 
book of rules. Printed books are a good thing, but they are 
not absolutely necessary to economical management. 

It must be remembered that system is much broader and 
more comprehensive than rules. Rules tell what a man 
can do and what he will not be allowed to do. For exam- 
ple: Rule No. 20, may say: '^A foreman must see that red 
lanterns, properly filled with oil and lighted, are displayed 
at all points of danger along a street or highway at night.'* 



SYSTEMATIZING CONSTRUCTION 137 

While Rule No. 30, may read, '^Manila and hemp ropes 
must not be stored in the same tool box with oils or grease 
of any kinds." 

System goes farther than this and tells how gangs must be 
organized, how machines must be operated and how all 
kinds of work done. Books on system are, we might say, 
short treatises on various kinds of construction, telling 
when to do things, how to do them, and the results to be 
obtained. 

Thus there must be written instructions, plans and 
sketches and even photographs, describing and illustrat- 
ing the work in detail. In Chapter VII mention has been 
made of issuing instruction to mechanics and laborers. 
With a book on system all general instructions can be in- 
cluded. Also all standard plans and instructions as to cer- 
tain classes of work that will be repeated on different jobs 
can be included in the book on system. This will be the 
means of saving much work. If plans are too large or too 
expensive to include in the book on system, then reference 
can be made to such standard plans, and copies of them 
when needed can be obtained from the office. 

It is by compiling and devising a system that the con- 
struction knowledge of every man in the organization can 
be used as well as the experience of other contractors and 
the knowledge gathered from technical papers and books. 
Modern management is not. complete without the kind of 
system here described. 

Modern management can in many ways effect many 
savings but to obtain the greatest efficiency in construction, 
there must be the proper organization and a modern system. 
The system is the result of these various studies and cost 
keeping. Every contractor has some such system, but 
most of them are crude for they have not been planned with 
sufficient care. 

Consequently the suggestion made is not new. Man has 
used these general methods since prehistoric times. Noah 
had specifications to govern the building the Ark, so he must 
have mapped out a system before he began to cut the tim- 



138 MANAGEMENT APPLIED TO CONSTRUCTION 

ber and build the frame. The only thing modern about 
the idea is to base the system on intimate knowledge and so 
compile it that the same methods can be used by an entire 
organization, working on many different jobs. This has 
been done by contractors, and today is being adopted by 
more and more construction companies. 

Some call these systems red tape. They are not. Red 
tape is such rules and regulations that add to the cost of 
work and bind those who are working, so that they accom- 
plish little save to keep the expensive system going. In 
other words the individual is so bound by red tape that 
at times he becomes helpless. 

It is readily possible with a system that has not been 
planned on paper, that it can develop into one of red tape. 
But if the system is diagrammed, given a fairly practical 
test; then if it becomes cumbersome the ''red tape" will 
probably be noted and eliminated. 

In other words the weak points are discovered and every- 
thing that hinders the men in doing efficient work is 
eliminated. 

Much that is considered red tape is not, for few men will 
take the time to think out why .certain things are neces- 
sary. They jump quickly to wrong conclusions. 

Departments in Contracting 

System will lead to the establishment of departments 
in a contracting organization. During the past decade 
it has become evident that many workmen, foremen and 
superintendents specialize in certain classes of work. Thus 
some men do nothing but excavation, others work only 
in concrete and others are expert on sewers. Most con- 
tractors must do all classes of work. In order to compete 
with other contractors there must be men in the organi- 
zation skilled in the various classes of construction. If 
a contractor is doing a limited business he switches from one 
to another as occasion demands. A firm doing an extensive 
business has departments, each with its own organization. 



SYSTEMATIZING CONSTRUCTION 139 

To strengthen the organization the company should 
be re-organized to suit conditions. A competent man, 
experienced in one class of construction, should be placed 
at the head of a department that will devote its time to 
that class of work. There can be few or many depart- 
ments — one for concrete another for foundations and one 
for sewers, highways, buildings, bridges and etc. Such 
an organization will obtain work when contractors follow- 
ing old methods will be hunting for jobs. At times, one 
department may cover several lines such as roads and 
streets, sewers and waterworks, foundations and tunnels. 
It may be necessary to shift men from one department 
to another, but provision can be made for such contin- 
gencies. 

Some contracting companies are making rapid progress 
by having various kinds of departments. This is a much 
better system than having different contracting companies 
cover each line of work as has been done quite extensively 
in some sections of the United States and Canada. 

By having departments the need for dividing books 
on system into smaller volumes for different classes of 
work, is apparent. Thus the books do not have to be 
made so large and can be used more easily. Money is 
also saved as useless parts are not duplicated. Each 
book contains only the information that the user actually 
needs. There will always be some rules and some part of 
the system that will have to be duplicated for all of the 
departments and in most cases the book of rules will 
govern all of the departments. 

Amount of Woek to Do 

A system is not complete that does not cover in some 
manner, the amount of work that is expected of an organi- 
zation, either from certain machines, a given size gang of 
men or from a combination of both. Conditions vary so 
much on each job that this is not an easy problem to decide, 
yet men will fail to make money for a contractor if this 
important point is not covered. 



140 MANAGEMENT APPLIED TO CONSTRUCTION 

It may not always be possible to decide on a certain 
amount of work of a certain class that must be done on 
every job, but some idea can be obtained for each particular 
job. 

For instance consider steam shovel excavation. A cer- 
tain size of shovel on one job may excavate, in ten hours 
600 cubic yards, on another job 400 cubic yards, while, 
on a third, it may only excavate 200 yards. An average 
of 300 cubic yards for these jobs will mean nothing, for on 
one, this average cannot be obtained and on the other two 
the shovel crew could loaf much of their time and exceed 
the average. 

Still it is possible to set a standard. With modern sys- 
tems, the estimated cost should be figured on an estimated 
yardage that can be moved. For one job this may be 250 
cubic yards and for another 500 cubic yards. These esti- 
mated amounts can be used as the standards for these jobs, 
unless it is shown that they can be exceeded. If they are 
too large they are still kept as the standard, so as to make 
the machines equal the amount if possible. 

The same method can be used to give the men standards 
with machine drills, concrete mixers and other machines 
as well as for hand and team work. In other words, mod- 
ern management leaves nothing to guesswork. Every ef- 
fort must be put forth to gain accurate information. The 
old methods of letting these matters take care of themselves 
should be obsolete. They are wasteful and extravagant 
and too often lead to failure. 

Construction Easily Susceptible to System 

When one makes a study of these matters it is quite 
surprising how many classes of engineering and architec- 
tural construction are susceptible to system and modern 
management. 

One class of work that is common today is concrete 
construction. It is the foremost hne in adapting itself 
to modern management. The fact is that more has been 



SYSTEMATIZING CONSTRUCTION 141 

done with concrete in this connection than with any other 
line. Concrete jobs have been finished quicker, a finer 
quality of concrete has been secured as well as more 
profit by the use of modern methods. 

Yet other lines yield the same results. Excavation — a 
class of work upon which contractors lose much money — 
can be and is being handled successfully under the principles 
outlined in this book. This includes all classes of excava- 
tion — railroads, wagon roads and streets, canals, reservoirs, 
cellars, ditches and trenches, dredging, dykes and levees, 
and many others. 

^^ Factory" tells of one interesting case: 

"Eighteen men at work in a borrow pit had in their average ten-hour 
day been sending down twenty dump cars of clay to the site of the dam 
which was being built in the river below. Three weeks later, under a 
new boss, the gang had been reduced to twelve men and was averaging 
sixty cars a day, with a high record of eighty loads in ten hours. 

''What's the answer? Management. The second manager knew 
how. 

"A Y-section of track extended on either side of the borrow pit. 
Two cars were placed on one branch and loaded simultaneously by 
separate gangs. Before they were filled a pair of empties would come 
back and be placed on the other branch. The loaded ones would then 
be dispatched, and the gang, moving over to the other branch, would 
begin loading the pair of empties. 

''First, the new manager straightened the track and made one man 
foreman of maintenance of way. Result: No more derailments. Sec- 
ond, he grouped the gang into two sections, one of Neopolitans and the 
other Calabrians in about equal proportions. Result: Natural rivalry. 
One day a workman struck a green branch in the top of the load of the 
car first filled. As the car rolled down the Y the gang which had won 
the branch cheered its ' side.' A precedent had been established. The 
green branch had come to stay. 

" Other factors aided in the men's enthusiasm as the work progressed. 
The walk from one branch of the Y to the other gave the 'cheering' 
and 'cheerless' gang two minutes' rest in every ten. Each man was 
taught how to use his shovel — each as he proved his worth was paid the 
maximum wage on the job. But what welded the gang into an effective, 
contented working unit was the green branch. 

*' Management assumes a knowledge of men's motives. What ap- 
peals to one does not 'sell' another. There are many 'green branches.' " 



142 MANAGEMENT APPLIED TO CONSTRUCTION 

Rock excavation and blasting can be readily systema- 
tized. The fact is that blasting is more effective and done 
at less cost when carried on along tested lines and on a well 
thought out system, than when using haphazard methods. 
This has been demonstrated again and again in tunnel 
excavation. Numerous articles in the engineering journals 
will afl&rm this statement. 

The same thing can be said of the quarrying of rock. 
System and scientific management are reducing the cost. 

Brick work and stone masonry as well as timber and steel 
construction are all susceptible to modern management. 
This hst covers various classes of work under the headings 
of materials moved or used, and another list could be given 
according to structures, which would include buildings, 
bridges, subways, sewers, reservoirs, dams and filtration 
plants. 

Construction Difficult to Handle 

In the author's opinion the principles of modern man- 
agement can be applied to all construction with success. 
There are, however, some classes of work that are difficult 
to handle. Two of these are deep foundations, especially 
under water or in a crowded city, and street paving. In 
such work it means that a closer study must be made 
of the many details. It is by keeping costs of details that 
such studies can be made, and if the small things are first 
made right, the larger operations will be handled with more 
ease. 

Unfortunately for contractors the engineer for the owner 
is frequently the cause of making the conditions surrounding 
the construction more difficult. On one occasion the 
author called the attention of a contractor to the fact that 
some street work the latter was doing was being handled 
poorly. His reply was: 

*'Yes, sir, j^ou are right. This is a poorly run job. There is a general 
lack of system. The men and the plant are not being handled according 
to any pre-arranged or well thought out scheme; nor is the work being 
done at a low cost. A profit is being earned, but it is small compared to 



SYSTEMATIZING CONSTRUCTION 143 

what it should be. Much of the plant is often idle, as you now see and a 
large per cent of the materials have to be handled and re-handled, 
while the forces are moved from place to place, seemingly without 
reason. 

''Some little of it is our own fault, but most of it is due to the engineers 
in charge, who really let the work before it is ready, and before arrange- 
ments are made for the various details to be properly attended to by 
the other parties interested. Figuratively speaking, we are up a tree 
to know from day to day, what will be our next step." 

Unfair specifications and forms of contracts hit a con- 
tractor hard, but these are as nothing compared to delays 
and hindrances placed upon a contractor, by an undecided 
engineer who is unprepared and indifferent as to what is 
due the contractor. Contractors too frequently have to 
contend with such engineers. 

Modern management can also be used to advantage in 
handling such engineers, both on private and public work. 
A contractor planning work must consider these things and 
he must consider a stubborn arbitrary engineer, just as 
he takes into consideration a difficult ledge that he must 
excavate. 

System must also cover the care of tools and machinery 
in which every contractor has much money invested. The 
expense of repairs and renewals is a continual one. Tools 
are lost, stolen and broken, causing a decided waste even 
on small jobs. A system of caring for the plant and of 
keeping account of each tool and machine, in order to re- 
duce the expenditure in this connection, is necessary. 

Records of Tools and Machinery 

All construction plants can be classified under two heads, 
namely, tools and machines. Under tools are classed all 
of those implements that a man can lift and use, including 
a hundred or more articles such as shovels, picks, hammers, 
saws, wrenches, bars and wheelbarrows. Under the head- 
ing of machines come all of those implements operated by 
hand or by mechanical power that are too large to be 
moved easily by hand. This division includes pumps, 



144 MANAGEMENT APPLIED TO CONSTRUCTION 

mixers, excavators, hoisting engines, cars, wagons, derricks 
and a multiplicity of other machines. 

A record should be kept of every tool and machine owned 
by a contractor. To do this it is necessary to adopt some 
well thought out system. If a contractor is working 
but one gang under his own supervision or that of a single 
foreman, using only small tools and a few machines, the 
record can be kept in his head and possibly nothing will 
be lost. But if this system is carried on when other jobs 
are taken and the forces are increased (as they are in most 
cases), the memory becomes overtaxed, and tools are lost, 
stolen and used up and money is wasted without the waste 
being realized. Besides this, there is no record of repairs 
made to each machine, and only the general charges for 
repairs show in the ledger. 

In all systems, there must be a central tool house and 
storage yard. This tool house may be the office or a 
building or room. It is used to house tools and small 
machines that are new and have not been issued on the 
job, as well as old tools not being used. Under the head- 
ing 'Hool house" in the book is listed everything in 
reserve. 

If an accurate record is to be kept of small tools, a 
hard and fast rule must be made at the start that em- 
ployes must not bring their own tools onto the job. The 
contractor must furnish all tools needed. This prevents 
men from '^ swapping" poor tools for good ones; prevents 
them from claiming tools as their own when they belong 
to the contractor, and allows the latter to direct the use 
of all tools and machines as he sees fit. If this rule is 
deviated from in the least, confusion is caused and the con- 
tractor is bound to lose money. The only exception to 
this is in the case of carpenters. These artisans, in many 
sections of the country, furnish their own tools, such as 
hammers, saws, chisels, planes, augers, squares and screw- 
drivers. In such cases the contractor does not furnish 
these men anything but the larger tools so no confusion 
is caused. 



SYSTEMATIZING CONSTRUCTION 145 

There must be a suitable tool box or hotise provided for 
keeping tools when not in use. These boxes can be num- 
bered or be denoted by the name of the foreman. Tools 
taken from the tool house are listed on another page in 
the record book and credited as coming from the tool 
house. The dates are set down in each case so as to keep 
a complete record. Thus there is a list of tools remaining 
in the tool house and a list of tools in each box, with the 
dates issued. Those remaining in the tool house can be 
checked off and a new list made to make it easier to refer 
to. At the end of each week, or at other suitable times, 
the contents of each tool box can be checked up to see 
if all are on hand. 

To illustrate how this is done, imagine that two shovels, 
three picks and two eight-pound hammers are short in 
one box. The foreman states that the shovels were broken 
and he threw them away, that he sent the three picks to 
the blacksmith shop to be sharpened. He says he did 
not need the two hammers and allowed another foreman 
to have them. He is informed that the parts of all broken 
tools must be saved in order to have them checked in 
or new ones issued in their place. When tools are sent 
to the shop to be repaired he is furnished with a slip to 
be used for the purpose, such as the following : 



Please repair the followin 

Shovels. 

Picks. 

Drills. 


Date 

g tools, returning them to me: 

Repaired and returned 


Repaired and returned 


Repaired and returned 


Rpnn.irprI nnrl refnrnprl 


Repaired and returned 


Signed 

Foreman . 



Fig. 9. 

This order is made in duplicate by using a sheet of carbon 
paper. These slips can be printed or a supply may be 

10 



146 MANAGEMENT APPLIED TO CONSTRUCTION 

made on a typewriter. They can have the names of many 
different tools placed on them or space can be left for 
writing the name. In the column ^'Repaired and Re- 
turned/' the blacksmith marks the date of his work and, 
if necessary, the hour. He then places the slip on a filing 
hook. If everything sent to the shop is accompanied by a 
slip a complete record of the blacksmith's work is ob- 
tained. If more than one man is employed in the shop, 
each places his initials against each item of work he does. 

With a duplicate slip in the foreman's hands, the black- 
smith is responsible for these tools until he returns them 
to the foreman. If it is desired to have the blacksmith do 
some special work, the foreman writes the order on the 
back of one of these slips and if he is skilled enough he 
can make a rough sketch on the slip and place on it the 
dimensions. If a sketch is necessary and he cannot do it, 
the order should be sent to the contractor's or super- 
intendent's office and placed with the smith from there. 

When the tools are returned to the foreman, he marks 
on the duplicate slip the date of receiving them. Thus 
his record is complete, and if his work has suffered for the 
lack of them he can show that the blacksmith kept them 
longer than necessary. If it was not the blacksmith's 
fault, the blame is fastened upon the foreman for not 
sending to the tool house to get extra tools to replace those 
being repaired. For obtaining such tools the foreman can 
use an order similar to the following: 



Please send me the following tools : 


Date 






Order filled 


Entered 




Foreman. 



Fig. 10. 



If the order is not filled it is returned to the foreman 
and destroyed. If it is filled, the clerk marks on the slip, 



SYSTEMATIZING CONSTRUCTION 147 

at the proper place the date, and when he enters it on his 
books he marks that date, and files the slip. The foreman 
marks on his duplicate the time the order was filled, thus 
completing the record. 

If one foreman gets tools from another he sends an order 
similar to the above to that foreman. The foreman filling 
the order marks on it when filled and keeps the order. 
Thus when his tools are being checked up and he is short 
two hammers, he produces the slip to clear his own record. 
The clerk then takes the slip, credits the foreman with the 
two hammers and charges them to the other foreman, 
marking on the slip the date of entry. This makes it 
necessary for the other foreman to produce these tools. 

On the inside of the lid of the tool box, or in the tool 
house, a list of the tools can be kept attached to a board or in 
a slide made for the purpose. Only the clerk has authority 
to change this hst and he revises when he checks up the 
tools. The foreman is thus held responsible for all tools 
charged to him unless he produces parts of broken one 
or produces slips showing that the tools have gone out of 
his possession. 

This general method is suitable for all jobs, for it keeps 
a record of each tool, accounts for broken ones and those 
worn out and keeps a record of repairs as well as of new 
tools issued from the reserve supply. The cost of the slips, 
whether printed or written, is small compared to the saving 
they effect. 

The rule regarding showing the parts of broken tools 
must be rigidly enforced. The author has refused to 
furnish a new hame string to a driver without his paying 
for it, unless part of the old one was brought to the office, 
tool house or stable. It is not necessary for a foreman or 
workman to wait until the tools are checked up to get a 
new one to replace old ones. They can be presented at any 
time and new tools issued in their place. If a foreman 
understands he is responsible for all tools issued to him he 
wiU care for them. The author has known foremen to 
keep a record each day of tools issued to each laborer in a 



148 MANAGEMENT APPLIED TO CONSTRUCTION 

memorandum book so he could check them off at night, and 
that foreman kept his tool box locked during the day. It 
is needless to say the work did not suffer from this. 

To prevent tools from being stolen they must be marked 
in some manner. One method of doing this is to use a 
brand with the contractor's name or initials on it and to 
burn these into wooden parts of the tools. The metal 
parts and tools can be stamped with a steel die. For 
close inspection this method answers the purpose, but at a 
distance tools cannot be told from those belonging to an- 
other man. By painting parts of the tools with distinctive 
colors, using the brand and die to identify them further, 
they can be recognized at a distance. . Thus hammers, 
picks, shovels, etc., can be painted blue from the head, 
part way up the handle; another contractor can use 
green and so on through various colors and shades. Two 
colors can also be used on the same tool. Some of this 
paint will wear off quickly but some will stay on during 
a season. The paint also protects the tools. All new 
handles can be painted before they are put into the tools. 

For large machines, such as derricks, cars and mixers, 
the same color scheme can be carried out. With two dis- 
tinct colors adopted as a standard, the painting can serve 
as an advertisement. The contractor's name can be 
painted on them, given further publicity. On some ma- 
chines it is also possible to paint numbers. 

It seems almost useless for a contractor, operating in a 
small way, to keep a record of the few large machines he 
may own, but this number within a few years may be much 
larger. Even if the number does not increase, it is a 
record that is easily kept and the information as to date 
of purchase and maker's name may prove valuable. Such 
a record may be kept in the small book with the tool records. 

The system outlined for keeping a record book of tools 
and machines is not well adapted to large jobs or for use by a 
contractor running a number of different jobs. When a 
number of contracts are being carried on at the same time, 
the main office is not so much interested in the particular 



SYSTEMATIZING CONSTRUCTION 149 

point on a job a certain tool or machine is being used, but 
rather what tools and machines are on each job. The 
local office looks after the record of where tools and ma- 
chines are located on each job. Thus there are two records 
to be kept. It can be seen that the local record for each 
job can be kept in the manner already described for a 
small job, but to have the entire system fit the main office 
records and make the whole system of records inter- 
changeable, the card index system should be used. 

A card index system is adapted both to tools and to 
machines. There are three general sizes of cards used in 
these indexes. The smallest size is 3 X 5 inches, the medium 
size is 4 X 6 inches, while the large size is 5 X 8 inches. Any 
of these sizes can be used, but for most purposes the 
smallest size is not large enough. The second size is large 
enough for small tools, and by using a card 7% X 6 inches, 
folded so as to be 4 X 6, a larger card is obtained than by 
using a 5 X 8. This is the size the author prefers for small 
tools, while for machines the single 5X8 gives ample room, 
especially if the back of the card is used. With these two 
sizes the home office record can be kept and likewise that 
of the local office. 

The 7% X 6 size is used at the main office for small tools 
and at the local office for both tools and machines. The 
5X8 size is used at the main office for machines only. 
The small tools are handled in a manner similar to the 
record in the book. Tool boxes and tool house records are 
made out on the cards and ffied according to jobs, index 
guides being used to show the cards for each job. New 
tools purchased or sent to the job are listed on additional 
cards and placed in the files. Duplicates of all of these 
cards are sent to the job so that the local office has the same 
record as the main office. At the local office these cards 
are filed and as tools are used up and marked off the record, 
at monthly intervals, this record is sent to the main office. 
At the local office new cards are also made out, one for each 
tool box, and each week or at any time decided upon for 
checking, these are carried out upon the job and check made 



150 MANAGEMENT APPLIED TO CONSTRUCTION 

for each foreman or tool box. The repair and order slips 
shown are used in connection with these cards. 

This gives a system that can be kept up-to-date, as 
cards with many corrections on them can be thrown away 
and new cards substituted. 

The cards may readily be referred to in a filing cabinet 
and a duplicate can be used to keep in the tool box or 
house. With the cards it is also possible to make many 
subdivisions, having a card for each division, and by num- 
bers, letters or other symbols keep these cards together. 

At the end of a job the card file is taken to the main office. 
There it is checked up with the card records and, as differ- 
ent tools are sent to other jobs the corresponding cards 
from the local office are sent to the jobs where the tools are 
to be used. 

The machine record is kept in a slightly different manner. 
First it is necessary to have name and number plates 
made bearing the contractor's name. A place for a num- 
ber and any other information is provided. These plates 
are fastened to the machine in a manner similar to that 
used in attaching manufacturers names. These plates not 
only tell who owns the machine but also allow a number to 
be used to keep a record of the various machines. Numbers 
in series can be used, such as 1-99 for mixers, 100-199 for 
pumps, 200-299 for dump wagons, and so on through the 
list. These numbers are stamped on the name plates. 
Consecutive numbers can be used as various kinds of 
machines are purchased, but by this method the numbers 
will not be a guide to the kind of machine, as they are when 
series are used. The numbers are stamped on the name 
plates with small steel dies. The date of purchase can 
likewise be put on the plate in this manner. 

These plates should be used even if the machine has the 
contractor's name and a number painted upon it, for the 
paint can be worn off, thus erasing name and number. The 
plates should always be kept clean so that the name and 
number can be read at all times. If more than one machine 
is rigged on one piece of plant the entire machine should be 



SYSTEMATIZING CONSTRUCTION 



151 



given a number and each separate machine a number. 
Thus a record can be kept of each piece of machinery when- 
ever it is transferred and even if several items of plant are 
assembled to make one piece of apparatus, such as a stiff 
leg derrick, a grab bucket and a hoisting engine being 
mounted on a car or skid to make an excavator. 

The size of card recommended for the main office is 5 X 8 
inches. In the example given a concrete mixer is listed. 
This is shown by the name. The description shows that it 





REPAIRS 1 


NAME Concrete Mixer 


DATE 


CHARACTER 


COST 


DESCRIPTION Mixer, gasoline engine & hoist 


4-2-1911 


Purchased 


iooo 


MANUFACTURER'S NAME Mixer - Success Mfg.Co. 


7-4-1911 


Main gear on mixet 


5 


10 


Engine - No Name Engine Co. 


10-11-1911 


Cylinder head-eng 


h 


25 


NO. Mixer -921 Engine - 16i2 


10-22-1912 


Overhauled, new 
holts & nuts 


8 


20 


OWN NO. Mixer - 62 Engine - 122 


2-1-1914 


Small <iears replacec 






SIZE No.l 




Painted 


18 


75 


CAPACITY H cu.yd. 


9-10-1914 


Overhauled. New 






DATE OF PURCHASE 4-2-1911 




Charging hopper, 






REFERENCE: CATALOGUE ^ Mixer - 1911 Cat. No 22 




Painted, etc. 


85 


50 


LIST FOR REPAIRS jEngine-Wll ., auLhed 










H.P. ^H 










REMARKS 






























TOOL BOX ON MACHINE 9 in. oiler 1 qt grease pot. 




• 






machine hammer, 6-in.cold cJiisel, 10-in.dovMe 










s wrench, 16-in.double s wrench , U-in .monkey wrench 










U-in Stillson wrench, 16-in. screw driver 
















. 


1 



Fig. 11. — Record card for large machines. Size 5 X 8 in. 



is a concrete mixer with a gasoline engine and a hoisting 
charging hopper. Under the manufacturer's name is 
shown that the mixer was made by the Success Manufac- 
turing Company, while the gasoline engine was made by 
the No Name Engine Company. The contractor's own 
numbers on the name and number plate that he has had 
placed on both the mixer and the engine are, for the mixer, 
62, and for the engine, 122. The manufacturer's numbers 
are also given. These numbers will be found of use in 
ordering new parts. The size of the machine is listed as 
well as the capacity. Both of these must be known and if 



152 MANAGEMENT APPLIED TO CONSTRUCTION 

they are not kept in the record expensive delays will often 
be caused while this information is obtained. The date of 
purchase is placed on the card. 

The reference to the catalog is to make it easy to obtain a 
description of the machine, its shipping weight and also in 
ordering new parts to get the right name and number in 
order to prevent costly mistakes. There is also the refer- 
ence to the catalog of the engine company. The parts of 
the engine needed for repairs have been printed on a sheet and 
the notation shows that this repair list has been attached to 
the card. The horsepower of the engine is recorded. 
There is a place provided on the card for remarks. 

On the right of the card is a space properly ruled to keep a 
record of the repairs on the machine. Here can be recorde d 
the date of purchase which can be omitted on the left of the 
card. The original price of the machine is given in the cost 
column. The record shows that the main gear wheel was 
replaced on the mixer on July 4 of the year it was purchased 
and the cost of it, including the labor of replacing, is given. 
The next entry shows that the cylinder head of the engine 
was repaired a few months later and the cost of this is 
shown. A year later the entire machine was overhauled 
and new bolts and nuts placed wherever necessary. On 
February 1, 1914, the small gears on the machine were 
replaced and the entire plant cleaned and painted. During 
the autumn of that year the plant was overhauled entirely, 
a new charging hopper placed on it and the machine was 
painted. Thus a complete record is shown of the first cost 
and all money spent on repairs and renewals. The entire 
record is in concise form and of easy reference. Likewise 
the condition of the machine is shown. It is also possible, 
from such a record, to figure the interest and depreciation on 
the machine. 

At the bottom of the card it is shown that there is a tool- 
box or chest on the machine. The contents of this box are 
listed. This can be entered on this card or can be recorded 
on another card and attached to this one. If the list is a 
long one the latter is the better plan. 



SYSTEMATIZING CONSTRUCTION 



153 



The faces of the cards give a very complete record of all 
machines owned by the contractor. The back of the card 
is reserved to show where the machine has been worked 
and is now located. This is shown in the other form illus- 
trated. On this side of the card there are only two head- 
ings, ''Jobs" and ''Yard." This record is easily explained. 
When it was a new machine it was sent to the Mission 
street job on May 11, 1911. Finishing its work there it 
was placed in the contractor's storage yard on September 
4. On March 5, 1912, it was sent to a job on Deering 
street. Finishing there it was sent to Boltstown on July 
8 and returned to the storage yard on October 12, 1912. 



JOBS: YARD 


5-11-1911 - Mission Street 


9-^^1911 


3-5-1912 - Deering Street \ 


7-8-1912 - Boltstown 


10-12-1912 1 


1,-2-1913 - San Juan \ 


2-6-19U - Sumner Street 


9-1-19U 1 


2-U-1915 - Bakersfield Reservoir 






^ 



Fig. 12, — Reverse side of Fig. 11. 

On April 2, 1913, the mixer was sent to a job at San Juan 
and used there until Feb. 6, 1914, when it went to a job 
on Sumner street. On September 1 it was returned to stor- 
age and started the season's work on Feb. 14, 1915, at 
the Bakersfield reservoir. This record shows that in about 
46 months since the mixer was purchased it has been idle 
about 18 months, thus working about 28 months. The 
record of work done, shown on the back of one of these cards, 
can extend over a number of years. 

If it is deemed advisable, a separate card can be made 
for the engine and kept in the record with other engines, 
but this, in the writer's opinion, is not necessary unless 
the engine is separated from the mixer. 

A busy contractor can obtain much information in 
a few minutes from a card like this. He is able to see 



154 MANAGEMENT APPLIED TO CONSTRUCTION 

what care is being given to each machine, the time it is 
worked and when it is idle, the cost of repairs and how 
one make of machine stands up with that of another manu- 
facturer. With the catalogue reference it is always possi- 
ble to compare the machine with a new catalogue to see 
what improvements have been made, making this a guide 
in buying a new machine. 

For a limited business a contractor or his general manager 
can go over every card in the index within a reasonable 
time. If large operations are carried on (a number of 
different jobs in various localities and extensive plant on 
each) the head of the company would find it a tedious 
task to go over all the cards in the machinery index. To 
overcome this a wall board can be used to show the loca- 
tion of the principal items of plant. 

This board is made quite large and has rows of holes 
bored into it with spaces between the holes to insert tags 
with thumb pins. These tags bear the names of the different 
jobs. Under these tags or labels in the holes are placed 
wooden pins with button heads on them. On these but- 
tons are placed the numbers of the various machines. 
These buttons can be made of different shapes, round, 
square, rectangular, triangular, diamond shape, etc., 
each shape showing a different kind of machine. A color 
scheme can also be used to show different kinds of machines. 
The numbers on the buttons can be in white or black. 
Thus if machines are numbered in series, for instance, 
mixers from 1 to 99, steam shovels from 100 to 199, and 
so on, then if the buttons under one job show numbers 
62, 78, 101, 204, 205, 310, and so on, the contractor knows 
at a glance that there are two concrete mixers, a steam 
shovel, two locomotives, and so on through the list. 

If different shaped buttons and colors are used these 
things can be more easily impressed on his mind. If he 
desires to know the particular machines, their sizes, etc., 
on any job, he orders the cards for these numbers to be 
brought to him. This wall board does not take the place 
of these cards, but is merely a graphic aid to the busy 



SYSTEMATIZING CONSTRUCTION 155 

contractor to keep posted as to the disposition of his 
plant. 

The small tool boxes on machines are treated in the 
same manner as are the tool boxes belonging to the fore- 
men. That is, the tools are charged to the man in charge 
of the machine and each week they are checked up. Any 
shortage must be accounted for in the manner previously 
described. 

Some machines have only a few tools on them while 
others, such as a large steam shovel, have quite a number. 
Few or many, they should always be on the machine as 
they are Hable to be needed at any minute not only to pre- 
vent break-downs but to make quick repairs. This alone 
shows the need of keeping an accurate record. These, 
too, are the tools that mechanics like to own and they are 
continually claiming the contractor's tools as their personal 
property. It is to prevent this that they should not be 
allowed to bring their own tools to the job. 

Every machine should be equipped with suitable tools 
for placing packing, as nothing injures machines so much 
as being improperly packed. In the case of steam, it 
means a great waste of fuel. If a machine is not so 
equipped when purchased such tools should be purchased 
or made. 

It is also necessary to purchase tools in addition to those 
furnished by the manufacturers for some machines. Soft 
hammers are needed, otherwise men will injure bearings 
by hitting them with a machinist's hammer. Wrenches, 
of different sizes and styles are generally needed. On some 
machines there must also be some wood- working tools, such 
as saws, hammers, hatchets, chisels and auger bits. 

All tool boxes should have substantial locks on them and 
except when the tools are in use the box should be locked. 
Such boxes should also have compartments in them to 
hold such brass parts as may be on the machine. Then 
when the machines are not in use the parts can be placed 
in the box and the boxes stored in a safe place. This 
will prevent them from being injured or stolen. Such 



156 MANAGEMENT APPLIED TO CONSTRUCTION 

tool boxes should be labeled with the same numbers as 
are placed upon the machines so that they will be known 
readily. 

The filing of the various record cards should be done 
in fihng cases with drawers that just fit the cards. The 
fihng can be done by names of machines, such as concrete 
mixers, cars, steam shovels, etc. The dividing tabs bear 
the letters of the alphabet (or the names of the various 
machines can be placed on the tabs), thus making each 
drawer self indexed. This answers the purpose for most 
occasions but it means extra work in finding the card for 
any certain machine when only the number is known. 

For this reason filing by numbers is to be preferred, 
as then a small card index is made of all the record cards 
and it is possible, by referring to this index, to get either 
the number or name. Then, by referring to the record 
cards by number, the exact card is found, showing the 
record of the desired machine. 

The system described can be kept in an inexpensive 
cabinet of limited size, for a contractor doing a small 
business. It can be expanded to cover an extensive con- 
tracting business reaching around the world. 

Purchasing Materials and Machinery 

Contractors waste much money in buying materials, tools 
and machinery — more than is supposed — unless one versed 
in purchasing goes over the bills. For this reason, this 
chapter would not be complete without some comment 
on this important feature. 

Both contractors and manufacturers are interested in 
the purchasing side of construction work. The manu- 
facturer wishes to sell, the contractor is compelled to buy. 
On a large variety of construction work a contractor has 
to spend from 30 to 60 per cent of the value of his contract 
for materials and machinery. He is interested in securing 
the best values for his money and at the same time in 
keeping his purchases to the minimum. 



SYSTEMATIZING CONSTRUCTION 157 

The manufacturer is keyed up at all times to sell. He 
must insist on a reasonable profit, supply a good product 
and must furnish a certain service. The manufacturer 
may also be called upon to help to finance the sale. All 
of these conditions, and some others, make the subject of 
selling and buying a very complex one. 

Contractors and manufacturers are learning more and 
more regarding this important subject each year, but as 
there is not a common meeting ground, except when an 
actual sale is to take place, these men do not learn from 
each other very rapidly. In considering a subject of 
this kind, the rascals must be ehminated — the contractor 
who is dishonest and the manufacturer who may wish to 
cheat his customers. 

There are two facts regarding selling that few buyers 
consider. The first is the cost to the manufacturer of 
finding the customer and making the sale. The second 
is the cost of collecting the money, with a possibility of 
losing a part or all of it. 

. Not only must the manufacturing costs be covered in 
the sale price, but also the two costs just mentioned must 
be included. There must be a reasonable profit for living 
expenses and for expansion. 

The cost of finding a customer may be quite a large 
per cent of the cost of manufacturing. It must cover 
advertising of all kinds, commissions to salesmen and 
profits to jobbers and agents. Even after the possible 
purchaser is found, the actual sale must be made. This 
may be the hardest part of the work, for several manufac- 
turers may find the same possible purchaser at the same 
time and, as only one can effect a sale, it may take con- 
siderable time on the part of all the manufacturers. The 
unsuccessful ones must charge this lost time and expense 
to the sales they actually make. 

It may seem that jobbers and agents could be eliminated, 
but to do so does not necessarily mean the selling cost 
would be reduced. Some manufacturers have tried to do 
away with jobbers and agents only to return to that system. 



158 MANAGEMENT APPLIED TO CONSTRUCTION 

It may be possible for a manufacturer doing only a local 
business to sell direct, but the company doing business 
over a large territory must have local representatives. 

This is done by selling through jobbers and agents or by 
having branch stores or offices in the leading cities. The 
expense of the latter may equal the commission paid an 
agent or the profit of the jobber, as this expense is constant 
during the fluctuation of business. The jobber and agent 
earn money from the manufacturer only as they effect a sale. 

Some manufacturers have succeeded in reducing their 
entire selling costs to less than 10 per cent, a few to less 
than 5 per cent. Most selling costs, however, will run from 
10 to 20 per cent, some over 20 per cent, and some even 
being higher than 30 per cent. 

The fact that a company's selhng costs are high does not 
necessarily condemn it or its products, for its line of goods 
may not admit of frequent sales. Included in these costs 
is not only that of finding the customer and effecting the 
sale, but also that of the service rendered the customer. 

The modern purchaser wants service. He wants trials 
of goods and the return of goods that are not up to his 
expectation. He wants guarantees and the replacement 
of all breakage. He wants prompt delivery. He wants 
his name placed on machines. He wants salesmen to call 
upon him or demonstrators to instruct him and his men 
in the use of certain articles. All of these things cost 
money and must be paid for by the purchasers. When one 
manufacturer renders this service, another one must. 

Demands for service come at all times. On one occa- 
sion the author was seated in the office of a concrete mixer 
agent when the telephone rang. A contractor was haviag 
trouble with his mixer. 

'^Did we sell you the mixer?'' the agent asked. 

'^No, we bought it from another contractor, who pur- 
chased from a contractor who bought it from you," was 
the reply. 

The agent went out to see the mixer, spent an hour that 
afternoon on the job and visited it again the next morning 



SYSTEMATIZING CONSTRUCTION 159 

to right the trouble, which was not with the mixer, but 
was simply due to a lack of knowledge of operating a mixer 
on the part of the contractor's superintendent. This was 
service and it cost money to supply it. 

Unless goods are sold for cash there is always some cost 
of extending credit. No matter how honest a man may be, 
misfortune may overtake him. He may be buying on 
long time agreement, giving notes. Thus interest is 
accruing on money invested by the manufacturer and this 
must be covered in the price or the buyer must pay in- 
terest on the notes. 

Even when goods are sold on lease sale agreement and 
remain the property of the manufacturer until the last 
payment is made, there is the possibility of having to take 
back the machinery and the payments actually made may 
not be enough to cover this cost, the depreciation on the 
machine and the cost of selling it again. 

These two general costs may vary for any manufacturer 
from season to season so he can only average them over a 
term of years. Advertising is necessary in marketing all 
products and this is an expensive item, for in order to 
obtain the best results, good mediums must be used and 
these are high priced. In the end, however, they give the 
greatest value for the money expended. Two kinds of 
advertising may be done — that of boosting the manufac- 
turer's own products and educational advertising, showing 
the public the use of the line of goods being manufactured. 
Both classes of advertising are endless tasks, and an adver- 
tiser must continually try new mediums so as to reach new 
customers. 

There is the cost of catalogs, folders, photographs and 
other means of explaining the merits and operation 
of the manufacturer's machines or goods. As a poorly 
gotten-up and cheaply printed catalog gives the im- 
pression that the goods are likely to be of the same 
character, many dollars must be spent for the best that 
can be produced. The distribution of these things likewise 
costs money. One manufacturer stated recently to the 



160 MANAGEMENT APPLIED TO CONSTRUCTION 

author that it cost him a dollar to answer an inquiry for a 
catalog. 

Advertising pays both the manufacturer and the pur- 
chaser. To advertise a product continually means that the 
manufacturer must stand behind his product and that it 
must be the best that brains and money can produce. This 
fact is the best possible guarantee to the purchaser. He 
knows that advertised goods are dependable goods, and 
that an advertiser has a reputation to maintain. Reputable 
trade journals do not want the business of irresponsible 
advertisers, and when readers can show that any company 
so advertising is not responsible, the journals are glad to 
eliminate such advertising from their paper. 

The manufacturer is usually on the alert to keep his 
products up to a high standard. This standard may not 
be set by himself but by his competitors. If the product 
is clay pipe, the desire is to produce and sell a better pipe 
than any other manufacturer. If the machine is a steam 
shovel, the manufacturer wants to build a shovel of better 
materials, of a more up-to-date design, of a greater range of 
work and, for a given weight and size, of greater capacity 
than any other make of shovel. This is the manufacturer's 
fight from one year's end to the other. Much money that 
would otherwise be profit is expended in these endeavors. 

Manufacturers are frequently large borrowers of money. 
They use vast sums in extending credit to their customers as 
previously pointed out, and, to purchase their raw materials 
at the right season of the year and obtain the lowest prices, 
they must buy in large quantities and for cash. Hence, 
large sums of money are generally tied up in the stock piles 
in their yards or buildings. It is such purchases that mean 
as low prices on the manufactured articles as is consistent 
with the quality of the goods and also make possible an 
even grade of goods being sold to the buyer. 

These are the considerations that cannot be shown in the 
price of an article, and make it almost impossible for a 
buyer to select his goods or machines upon a price basis 
alone. Two articles may, to all appearances, be the same, 



SYSTEMATIZING CONSTRUCTION 161 

but one will outlast the other by many months or years. A 
shghtly increased cost may mean that an article will last 
twice as long. 

This is not the only factor for a contractor to consider. 
In a machine it may mean that his forces will not be delayed 
by frequent breakdowns. Likewise the factor of ^^ safety 
first'' must be considered. This may also be the case in 
some materials and supplies. Take, for instance, wire rope. 
Ask for quotations of several thousand feet of rope and the 
prices will vary quite a little. A cheap rope may mean that 
the work may be delayed by breaks and that men may be 
injured or killed. 

These are the general facts from the manufacturer's side 
of the question of buying and selling. There are other 
details that could be set forth, but for the present purpose 
it is enough to state the general features only. 

The purchasing end of the business must be based upon 
these facts and additional ones that are to be considered 
from the purchaser's viewpoint. 

The products that a contractor purchases can be di- 
vided into two classes — materials, including supplies, 
and machines. At one time it was just as difficult to pur- 
chase materials in a satisfactory manner as is now the case 
with machines. 

This change in purchasing materials is due to the fact 
that certain standards have been set for materials by some 
of the national engineering societies. Cement is manu- 
factured and purchased upon the standard specifications 
of the American Society of Testing Materials. The Ameri- 
can Concrete Institute has adopted certain standards 
for materials in connection with concrete. The Ameri- 
can Society of Civil Engineers has adopted standards 
for other materials. The Lumbermen's Manufacturers 
Association has adopted standards for timber. Such stan- 
dards are becoming generally known among the trade 
and as contractors learn that manufacturers have adopted 
these standards, it makes it a comparatively easy matter 

to purchase most materials. 
11 



162 MANAGEMENT APPLIED TO CONSTRUCTION 

A list of the probable needs of the contractor, together 
with the specification of the society or association govern- 
ing these materials, can be submitted to a number of manu- 
facturers and prices can be asked for, with dates of deliv- 
ery. This makes it possible, if the delivery dates are 
satisfactory, to place orders or make contracts based upon 
the lowest prices. 

Disputes are not likely to arise, for the standard speci- 
fications will govern the inspection and this can nearly 
always be done by a disinterested party. In fact there 
are firms of engineers that make a specialty of inspecting 
materials, charging a fee for their services. 

With machinery, except in some few machines pur- 
chased under engineering specifications, this is not the 
case, and it is especially so with contractors' equipment. 
What is to recommend a particular type of machine? 
Testimonial letters are of little value. The majority 
of these letters are in answer to communications from 
the manufacturers as to whether a machine has proven 
satisfactory. It is but natural that in replying the 
purchaser is likely to say all he can that is favorable. Even 
if the letter is unsolicited it may mean little for the terms 
used are general ones and would suit some other machines 
just as well. Nor is there any guarantee that the writer 
of the letter is a competent judge of the merits of the ma- 
chine, either as to its durability or its being the best adapted 
for the work. In many cases the writer of the letter may 
never have used any other make of machine and may not 
possess any particular skill in operating the one he owns. 
Repeat orders from men who have used a variety of ma- 
chines are recommendations, but repeat orders from a man 
who has used only one make of machine can hardly be 
considered a high recommendation. It simply shows that 
he has not found fault with the machine, whereas, if he 
had tried some other make he might have purchased 
elsewhere. 

Manufacturers overlook these facts and use testimonial 
letters without telling the conditions surrounding the 



SYSTEMATIZING CONSTRUCTION 163 

use of their machines. Recently the author saw the state- 
ment of one concrete mixer company, in which it was 
said that one company owned and used sixteen of their 
mixers. Such a statement was more or less impressive, 
but if the actual facts had been given it would have been 
an excellent advertisement. 

This contracting company, doing a large business and 
making a particular concrete product, has, during 10 years, 
used and tried out the majority of the various types of 
concrete mixers. This experience made them decide upon 
a certain type and size as best suited for their work. Then 
they tried a number of different makes of this type and 
decided that the best built and the one to give the best 
service and results from their standpoint was that of a 
certain manufacture. Consequently they are using only 
this make of machine and every repeat order is a testimo- 
nial to the manufacturer. This is a remarkable recommen- 
dation that few manufacturers have received, yet this 
company is hardly making the fact an asset. 

An attempt is being made to place the buying of goods 
on the plane of engineering and there has been offered to the 
public the title of ^^ purchasing engineer.' ' Is this the 
proper title or is it wise to try to make this work either an 
art or science? In most mercantile lines, the title that has 
been in common use is that of '^ buyer.'' For large engi- 
neering and construction corporations, for the railroads and 
the large manufacturing establishments the title in most 
common use has been that of ^'purchasing agent," a few 
having used the term manager or director in place of agent. 

The buyer or purchasing agent is simply what the name 
denotes — the man who comes into contact with the seller 
and does the actual buying. He may be purchasing on 
exact specifications furnished him, or he may be using his 
own discretion, knowledge and judgment. He may not 
place an order before he has consulted with one or possibly 
several officials of his company. His work may, at times, 
for a contractor, or for a manufacturer, approach the work 
and ideals of an engineer; upon other occasions there may 



164 MANAGEMENT APPLIED TO CONSTRUCTION 

not be any similarity. It may be possible, under some con- 
ditions, for an engineer to purchase to better advantage 
than a man without engineering training; in other cases this 
very training may prevent the purchaser from buying to 
advantage. 

Hardly any one man, speaking generally, can possess all 
the technical knowledge and training to make every pur- 
chase for some of the largest contracting companies, nor 
can he possess the knowledge of how certain machines are 
to be used. Hence the purchaser must rely on others 
within his organization to some extent, and if he does not 
possess engineering knowledge he can consult with the 
engineers from the department for which the purchase is 
being made. There must be competent advice, and this 
will come from within the organization in most cases or 
from outside experts when necessity demands. 

Few buyers or purchasing agents would, in the author's 
opinion, wish to have their titles changed even if they are 
graduate engineers. Their work cannot be changed by 
changing their title, and there should be no endeavor to 
surround their work with mystery. It should be made as 
open and above-board as possible, to render such assistance 
as is consistent with the act of buying. 

Purchasing must be based on intimate training and 
knowledge if it is to be successful. The buyer must have 
an alert mind, know human nature, have general knowledge 
of both buying and selling, possess knowledge of the wants 
of his own company and likewise an intimate knowledge of 
materials and machinery to be bought. 

Successful buying is based upon knowledge, and this can 
be obtained from study and from actual buying. If the 
purchaser does not know the basis of selling he cannot tell 
if he is securing low prices. He must understand price 
lists and discounts. He must know of factory deliveries 
and other details that will save money. 

A very large number of articles are sold on a list price, 
this Hst standing for years and the discounts varying from 
season to season and also from year to year, as the price of 



SYSTEMATIZING CONSTRUCTION 165 

materials that enter into their manufacture varies. Then 
there are other Ust prices that change from time to time, on 
which the discounts remain the same. Thus there may 
be discounts such as 30 per cent, 10 per cent or 10 per cent 
and 7}i per cent. The manufacturer may give all of these 
discounts to the jobber. The latter gives the merchant 
intending to resell the article 30, and 10 and 10, while to a 
consumer buying from either the merchant or the jobber, 
ony the two discounts of 30 and 10 may be given. Other 
conditions surrounding a sale may cause the discounts to 
vary somewhat, but if the buyer does not understand the 
basis of list prices and discounts he is likely to be satisfied 
with whatever is offered him. 

Materials and supplies purchased directly from the stock 
of either a merchant or a jobber are likely to be higher in 
price than those shipped from the manufacturer direct. 
This is due to the fact that the goods may have been 
bought and paid for by the seller, so he has money invested 
in them that must earn interest. He has paid to have them 
put into his warehouse and must stand the expense of 
handling, packing and cartage to reship them. These 
things add to the selling price. 

If a machine is shipped direct from the factory all of these 
items are eliminated. The jobber may not even have any 
money invested in the transaction for he may be paid before 
his bill falls due with the manufacturer. It is not necessary 
that an order be very large to have it shipped direct from 
the manufacturer, but it must come within the rules laid 
down by the manufacturing associations. For instance, 
when the author was a buyer he could order 300 pounds 
of tool steel as a factory shipment, while 275 pounds would be 
shipped from the jobber, costing from 1 to 2 cents a pound 
more plus local freight from the jobber to the contractor, 
while the factory makes a freight allowance on their ship- 
ments. To obtain a shipment direct from the factory takes 
longer, so that the wants must be anticipated and ample 
time allowed. Car load shipment, except of some kind of 
mixed goods, can always be made factory shipment. 



166 MANAGEMENT APPLIED TO, CONSTRUCTION 

The method of paying for goods sometimes affects their 
price. Cash in hand is an asset always, so that cash dis- 
counts are offered. Some few classes of goods are sold 
for cash only, that is, bill of lading attached. In this case, 
it is only possible to obtain the bill of lading to get the 
goods from the railroad by paying the sight draft attached 
to the bill of lading. It is not a question of a man's stand- 
ing or his credit but the value of money over waiting 10 or 
30 days to be paid. These are some of the things for the 
buyer to know and understand. . 

For machinery and equipment the buyer must know the 
needs of his organization. He must not know simply that 
they need a piece of machinery, but must know the general 
methods of carrying on their jobs, so as to understand the 
type of machine needed and the size and the appurtenances 
to control and operate it. He must know of the machines 
that are on the market. For some of the latter information 
he can depend on the manufacturer or seUing agent, but 
there is much that the buyer must know. Naturally each 
manufacturer thinks that for a certain class of work his 
machine is best. If he thought otherwise he could not 
honestly and consistently urge the sale. 

This is one of the difficult features of buying construction 
machinery. The manufacturers use such terms as '^eco- 
nomical operation," '^ durability and superiority," '^ acces- 
sible construction," '4ow maintenance charges," and 
'^ greatest results and best service." All of these things 
may be true, yet they are applicable to many machines, so 
they have little effect on the reader of advertisements and 
catalogues except to confuse him. To a great extent it is 
these general terms that are likewise used in letters. 

The author's preference in such matters is to have a well 
written catalogue or circular, first telling in detail of the 
design and construction of the machine, and from this going 
into the operation. 

The range of work of the machine can be shown together 
with its capacity, its adaptability to different classes of 
work and the cost of maintenance. If there are any special 



SYSTEMATIZING CONSl RUCTION 167 

features or unusual improvements over other machines of 
the same type, these things can be called to the attention of 
the reader in closing. With such a catalogue it is possible 
to write a letter to a prospective customer and even in a 
short letter, reference can be made to each feature by page 
number. 

These are the things that an intelligent purchaser wishes 
to know so that he can make a wise selection. If he is 
fooled he is not likely to give a repeat order. If a purchaser 
wishes a concrete mixer, and wants to get the one he believes 
best suited to build any kind of a small structure, and 
sends to thirty or more concrete mixer manufacturers for 
their catalogues and prices, he must either make his selec- 
tion from the information sent or ask to have representa- 
tives call upon him. Not considering the salesmen, it is 
to be seen at once that, if the printed matter is incomplete 
and contains only generahties, with a long drawn out 
letter that is confusing, such manufacturers will be given 
scant consideration. This may eliminate one-third of the 
number. 

The buyer then begins a close study of the other machines 
and finds that, as to many details of either construction or 
operation, the information given is meager. So he disposes 
of half of the remaining letters at once. 

Of the rest, it becomes a question of price, the details of 
operation, and possibly additional letters are written to 
clear up certain matters. In a case like this the contractor 
may have secured a good machine; but not necessarily the 
best, for it may be that one of those first ehminated from 
consideration was the best, though its claims were so poorly 
presented that its merits could not be seen. It is true that 
a good catalogue has sold a poor machine, while the sale 
of a good machine has been ruined by poor advertising 
literature. 

Another means of assisting in deciding upon new ma- 
chines to purchase, is to keep a card index of descriptions 
of machines and jobs they have been used on. When it is 
necessary to decide upon these things, consult these cards 



168 MANAGEMENT APPLIED TO CONSTRUCTION 

so as to understand the economy of operation. Obtain 
some knowledge of the capacity of the machine under actual 
working conditions and the range of work. These are facts 
seldom set forth by the manufacturers, but rather those 
furnished by some engineer or contractor having experience 
with the machines. It is not possible to decide upon the 
purchase from information of this character but it will be of 
assistance. 

Free trials for a period of from 10 to 30 days are of assist- 
ance in deciding upon and trying out new types of machines, 
but this is not likely to be of decided advantage under most 
cases. After installing such a machine as a concrete mixer, 
it is better to keep it on the job rather than to go to the cost 
of putting in place another mixer, with all of the delays of 
placing an order, receiving and installing the machine and 
changing the charging and placing methods. Under such 
conditions, a trial is equal to a purchase, and it is advisable 
to take more care in selection. Reserve tryouts for such 
times when they are not likely to interfere with the work 
and permit more careful comparison. • 

Another method of assisting in purchasing is to obtain 
catalogues and other information regarding a machine when 
there is no idea of making an immediate purchase. In 
this way ample time can be taken to gather information 
as to the work it can do, the ease and economy of opera- 
tion and many other features that may commend the 
equipment. 

Price may count in the purchase but the main point 
is to have a machine well built so that breakdowns will 
not be frequent, the machine will do work at a low cost 
and set such a pace on the job as to save money on every 
part of the work. These things will count more than a 
few hundred dollars that may be saved on the purchase 
price. 

With some purchases the selection will be made on a 
price basis and on the delivery that can be given. This 
will be for certain classes of machines where the method of 
operation is the same and where only a few reputable 



SYSTEMATIZING CONSTRUCTION 169 

manufacturers can compete. The decision in such cases 
will be easily made. 

In other cases, as in some power plants, the machines 
will be purchased on specifications furnished to manufac- 
turers. The following of the specification will count in 
such purchases as well as the price, delivery and installa- 
tion. For such machinery the contractor is likely to em- 
ploy a mechanical expert to draw up his specifications and 
plans. It will also be possible to have the advice of this 
expert in selecting the machinery and making the purchase. 



CHAPTER X 

THE EFFECT OF MODERN MANAGEMENT UPON 

WORKMEN 

While efficiency in construction is the result of system, 
the system must take into consideration the workmen. 
Modern management considers not only all the workmen, 
but the individual, and his knowledge, peculiarities, ability 
to do work, his welfare and his compensation. 

Old Management and Workmen 

In many cases the old system of management did not 
do this. The workman was considered a necessary evil. 
He was driven to his work, poorly fed, underpaid and made 
to feel that his position was a very humble one. This 
kind of treatment does not make a better workman of 
any man. A contractor of the old school, operating in 
the south some years ago, used to say: ^^Kill a mule, 
buy another. Kill a negro, hire another." This spirit 
drove men from his employ and made his work cost more. 

Another contractor once said: '^I do not know the names 
of any men working on my jobs under the grade of fore- 
men, and I don't want to know their names.'' 

Modern management of men leads to the development 
of a close relationship between employer and employee 
and to create this relationship the men must be studied. 

Study of Men 

Certain features of the study of men have been discussed 
in the preceding chapters. The labor end of the construc- 
tion business is of the utmost importance and the last word 
will never be written on the subject. Many contractors 
realize this and begin their study of employees by first 

170 



EFFECT OF MANAGEMENT UPON WORKMEN 171 

obtaining their names. They go so far as to record detailed 
information about each employee. 

Fig. 13 shows a form for this purpose which can be 
made on a card so that an alphabetical index can be kept 
of the men. The sample given is used by a western con- 
tractor. On this card can be entered the date of employ- 
ment, the man's name, age, nationality and whether he is 
married or single. His address and that of nearest relative 
or friend, his occupation and wages, previous employer 



EMPLOYEES RECORD 

191 

Name Ase Nationality. 

Married or Single Home Address - - 


Name and Address of Nearest Relative or Friend 


Employed as JRate Per Hour 


Where Employed. ._ _ Previous Employer 






Employees Signature 1 


Foreman. 



Fig. 13. — Record of employees. 

and other information should also be noted. It would be 
advisable to show the date of leaving the contractor's 
employ and on the back of the card space could be provided 
to show promotions received. Other information that 
would be a help in placing the man and using him on dif- 
ferent jobs may be included in the record. 

This card is filled out when the man begins work. The 
card gives a record of the man in case of accident or in case 
he leaves the contractor and again asks for employment. 
It can be the basis for a study of each man's disposition, 
and his knowledge of different classes of work. 

It is becoming recognized that in handling men the 
individual must be studied and placed where he will give 
the greatest results. 



172 MANAGEMENT APPLIED TO CONSTRUCTION 

Two men can earn their pay by operating a diaphragm 
pump all day. The cost of this will be three or four dollars, 
while for less than fifty cents a day a gasoline engine will do 
more efficient pumping than the men. Thus, to substitute 
a gasoline engine for the two men is economical. These 
two men can be tried at shoveling and, should they prove 
to be poor shovelers, they may be discharged. 

The men should not be discharged because a gasoline 
engine can do more economical pumping nor should they 
be let go because they do not measure up to the other 
shovelers. Possibly if they were allowed to try picking 
they would prove efficient — possibly turn out to be better 
pickers than the men already doing that work. 

The foregoing paragraphs will suggest some of the studies 
necessary to economical management. Modern manage- 
ment is also teaching men that laborers should not be 
worked in large gangs. Men lose their identity by being 
placed together. Results are expensive and it is difficult 
to learn what a man can do or for what work he is best 
fitted. Because of working men in large crews construc- 
tion has cost more than it should and one of the extra costs 
has been the indiscriminate discharging of men. Every 
time an experienced worker is discharged a new one must 
be trained — and this is expensive. It is doubtful if con- 
tractors realize what this one item has cost them. 

Some years ago the author took the pay rolls of a large 
construction company and estimated the number of men 
hired on each job so as to learn the total number employed 
to keep the forces up to the number actually needed. It 
was found that for every laborer actually needed five men 
had been hired. Thus, to keep a force of a hundred men 
at work it was necessary, during the life of the job, to 
employ five hundred men. Most of this waste could have 
been eliminated. 

It is too common a practice for a contractor or foreman 
to discharge a number of men, for httle or no cause. The 
expense of getting other men and breaking them in is 
too great to make such procedure profitable. There 



EFFECT OF MANAGEMENT UPON WORKMEN 173 

may be some fault with the men, but the chances are that it 
is either with the contractor or foreman or the system of 
carrying on the job. Contractors, Hke other employers, 
go too much on the principle that the boss is always right. 
He can be at fault just as much as the men. 

EspiEiT De Corps 

Let the men know that their employer is interested in 
them and they will become interested in the work of the 
employer. It is the part of modern management to foster 
this spirit. The first principle of this is to let the man's 
individuality stand out. A record card, as shown in this 
chapter, gives the man a chance. It shows the workman 
that his ''boss" wishes to know something about him and 
what he has done in the past. Then, too, the fact that the 
man is asked to make daily reports and sign them shows 
that his work is to be known and that he is being made 
responsible. Every man is pleased when certain respon- 
sibility is placed upon him. He begins to feel that he is 
part of the organization. His work and reports become 
something that he can discuss with his boss and if this 
is done with him, pride in his work is encouraged. 

Placing a premium on his knowledge and his ability is 
a further incentive to bring from the man the best that is 
in him. Thus the tie between him and his employer is 
being strengthened. He begins to use the word ''we" 
in talking of the job and when a man talks like that 
it means more dollars in the pockets of employer and 
employee. 

It is also incumbent upon the employer to consider the 
welfare of his men while at work and rest. This is neces- 
sary in towns and cities and more so in "the sticks" where 
men have but little amusement during idle hours. All 
work and no play soon makes any man dull. 

Institutional Management 

The individual employer, the firm or corporation, to- 
gether with all employees are considered to be an institu- 



174 MANAGEMENT APPLIED TO CONSTRUCTION 

tion in which there is a common interest and all work to- 
gether for success. The money earned is divided accord- 
ing to a prearranged plan. The employees receive wages 
and the employer the profit on his investment of capital. 
Additional profits earned are divided between employer 
and employees by special arrangements. 

Institutional management places an industrial organi- 
zation on a higher plane than an enterprise designed to 
enrich a few at the expense of many. It is not, in any 
manner, a co-operative scheme, although it demands co- 
operation from all. 

Thus there is effected a management that is divided 
between the employer, his direct representatives, and the 
employees. Committees can be formed and societies 
maintained among the men to further the interests of the 
institution. These associations can have for their purpose 
the safeguarding of the lives of the men, the increasing of 
their output by working more efficiently or the aim may be 
to increase the profits of the institution, to increase the 
earnings of the men, to better working and living condi- 
tions, to provide more recreation, to educate their children 
better, to have better sanitation on the work and in the 
homes, to engage in sports and amusements, and do all 
of those things that mean living better lives. 

These things are accomplished by instructing the man, 
by meetings and lectures at suitable hours, by providing 
club rooms or tents for the gathering of all, when not at 
work or by organizing outings or indoor recreation parties. 

Contractors have a great opportunity in this line, for 
there already exists, in the construction field, a certain 
brotherly feeling between those engaged in this line of 
work. 

Scientific Management and Workmen 

The introduction of scientific management has, at first, 
a tendency to increase the work of the officials, but this 
is only for a short time. As soon as the system becomes 



EFFECT OF MANAGEMENT UPON WORKMEN 175 

understood and the various employees learn their duties 
and assume their responsibihties, the work of those in 
charge is Hghtened. This is aptly illustrated by a state- 
ment of a manager, who has introduced scientific manage- 
ment in his company. He said: ^'We would be swamped 
with work and every one from our president down would 
be handicapped, owing to the phenomenal increase in our 
business, if it were not for our wonderful system, which 
gives our officials plenty of time to consider ways of 
increasing the business and making our men contented." 

It is possible to have a system that, in many ways, takes 
care of itself with only a little supervision so that a great 
amount of work can be done. The possession of such a 
system is an asset to any organization, and is very essential 
in contracting where it is necessary to have extra time to 
bid upon new jobs and start them when they are secured. 

Scientific management has just as wonderful effects 
upon foremen, mechanics and common laborers. It 
makes men interested in their work and especially in 
the job. This is the means of leading men to think for 
themselves and in the interest of the job and the contractor. 
Further inducements held out to the men cause them to 
think of ways to increase their earnings — which, of course, 
means increasing the employer's profit. 

One good result of this kind of management is the reduc- 
tion in the amount of liquor consumed. The men find 
that when they drink on the work they are not able to earn 
as much as when they keep sober, so, of their own accord, 
they drink less — and, in many cases, drinking intoxicants 
is eliminated. 

These things have a decided tendency to make men 
more cheerful at their work. They realize that they are 
earning more money and their work becomes a pleasure. 
The hours pass rapidly, for the workmen are contented. 

Scientific management means the selection of the best 
men. The inefficient workmen are soon eliminated, leaving 
only bonus earners in the organization. And if only one 
contractor in a community is applying modern manage- 



176 MANAGEMENT APPLIED TO CONSTRUCTION 

ment and paying bonuses to his men, this fact will attract 
to his employ many of the best workmen in that section 
of the country. 

Another result obtained is to keep the same men on the 
job for a long time. In fact, many of them will remain in 
the contractor's employ for years. They may leave, but 
will come back again when they can. This point was 
illustrated by a story Mr. Frederick W. Taylor told in 
his book ^^The Principles of Scientific Management." 

"Each ore shoveler was given a separate car to unload each day, 
and his wages depended on the work he did. The man who unloaded 
the largest amount of ore was paid the highest wage, and an unusual 
opportunity came for demonstrating the importance of individualizing 
each workman. Much of this ore came from the Lake Superior region 
and was delivered in Pittsburg and Bethlehem in exactly similar cars. 
There was a shortage of ore handlers in Pittsburg, and hearing of the 
fine gang of laborers that had been developed at Bethlehem (the result 
of scientific management), one of the Pittsburg steel works sent an agent 
to hire the Bethlehem men. The Pittsburg men offered 4 ^fo cents a 
ton for unloading exactly the same ore, with the same shovels, from the 
same cars, that were unloaded in Bethlehem for 3 Ko cents a ton. After 
carefully considering this situation, it was decided that it would be 
unwise to pay more than 3 Ko cents per ton for unloading the Bethlehem 
cars, because, at this rate, the Bethlehem laborers were earning a little 
over $1.85 per man per day which was 60 per cent more than the 
ruling rate of wages around Bethlehem. 

''A large series of experiments, coupled with close observation 
had demonstrated the fact that when workmen of this caliber are 
given a carefully measured task, which calls for a big day's work on 
their part, and that when, in return for this extra effort they are paid 
wages up to 60 per cent beyond the wages usually paid, this in- 
crease in wages tends to make them not only more thrifty but better 
men in every way; that they live rather better, begin to save money, 
became more sober, and work more steadily. When, on the other hand, 
they receive much more than a 60 per cent increase in wages, many of 
them will work irregularly and tend to become more or less shiftless, 
extravagant and dissipated. Our experiments showed, in other words, 
that it does not do for most men to get rich too fast. 

"After deciding, for this reason, not to raise the wages of our ore 
handlers, these men were brought into the office one at a time, and 
talked to, somewhat as follows: 

" 'Now, Patrick, you have proved to us that you are a high priced man. 



EFFECT OF MANAGEMENT UPON WORKMEN 177 

You have been earning every day a little more than $1.85, and you are 
just the sort of man that we want to have in our ore shoveling gang. 
A man has come here from Pittsburg, who is offering 4 %o cents per 
ton for handling ore while we can pay only 3Ko cents per ton. 
I think, therefore, that you had better apply to this man for a 
job. Of course, you know, we are very sorry to have you leave us, but 
you have proved yourself a high priced man, and we are very glad to 
see you get this chance of earning more money. Just remember, 
however, that at any time in the future, when you get out of a job, 
you can always come right back to us. There will always be a job for 
a high priced man like you in our gang here.' 

''Almost all of the ore handlers took this advice, and went to Pittsburg 
but in about six weeks most of them were again back in Bethlehem un- 
loading ore at the old rate of 3Ko cents a ton. The writer had the 
following talk with one of these men after he had returned : 

" 'Patrick, what are you doing back here? I thought we had gotten 
rid of you?' 

" 'Well, sir, I'll tell you how it was. When we got out there, Jimmy 
and I were put on a car with eight other men. We started to shovel 
the ore out just the same as we do here. After about half an hour I saw 
a little devil alongside of me doing pretty near nothing. I asked him 
why he didn't go to work. I told him that unless we got the ore out of the 
car we wouldn't get any money on pay day. Well, the little devil stood 
up to me and said to mind my own business. I could have knocked him 
over with my little finger, but the rest of the men put down their shovels 
and looked as if they were going to back him up. So I went around 
to Jimmy and said (so the whole gang could hear it), 'Now, Jimmy, 
you and I will throw a shovelful whenever this little devil throws one, 
and not another shovelful.' So we watched him, and only shoveled 
when he shoveled. When pay day came we had less money than we got 
here at Bethlehem. After that Jimmy and I went to the boss, and 
asked him for a car to ourselves, the same as we got at Bethlehem, but 
he told us to mind our own business. And when another pay day came 
around we had less money than we got here at Bethlehem, so Jimmy and 
I got the gang together and brought them all back to work again.' " 

This strikingly illustrates many good effects upon com- 
mon laborers due to scientific management. The men, 
being anxious to .make money, start to work on time, 
instead of using up ten or fifteen minutes twice a day to 
find their tools and get instructions from their foreman. 
Then, too, they keep working instead of watching the boss 
for a chance to loaf when he is not looking. 

12 



178 MANAGEMENT APPLIED TO CONSTRUCTION 

These things are not surmises but the results of handUng 
men on construction by means of modern management 
as outhned in this book. The author has seen men using 
shovels who were unwilling to straighten their backs but 
a few times a day, as they claimed it interfered with 
rapid work. 

Then, too, good men, without interference from the boss, 
have made lazy workmen measure up to their standards 
so that the speed of the job would be maintained. These 
things have been done in excavating earth and rock, in 
laying pipe, in mixing and placing concrete, in timber 
and steel construction and in fact, in nearly every line of 
engineering and architectural construction. 

Results of such work by construction economists and 
efficiency experts could be given in actual figures that the 
ordinary contractor would not believe. These results have 
been obtained and are being obtained more and more 
as contractors realize that their work can be improved and 
profit increased. However, if contractors are, like the 
steel manufacturers of Pittsburg, unwilling to be benefited 
by the experience of others, their work will cost more 
without any one profiting by the increased cost. 

The ones to be most benefited by the application of 
scientific management to construction are contractors as 
they will make in a year, many thousands of dollars in 
extra profits. Their employees will, likewise, reap benefits 
and assist in making the new ideas of management a 
success. In closing Mr. Taylor is again quoted. 

*' Perhaps the most important of all results attained was the effect 
on the workmen themselves. A careful inquiry into the condition of 
these men developed the fact that out of one hundred and forty work- 
men, only two were said to be drinking men. This does not, of course, 
imply that many of them did not take an occasional drink. The fact 
is that a steady drinker would find it almost impossible to keep up with 
the pace which was set, so that they were practically all sober. Many, 
if not most of them, were saving money, and they all lived better than 
they had before. These men constituted the finest body of picked 
laborers that the writer has ever seen together and they looked upon the 



EFFECT OF MANAGEMENT UPON WORKMEN 179 

men who were over them — their bosses and their teachers — as their very- 
best friends and not as drivers forcing them to work extra hard for 
ordinary wages. It would have been absolutely impossible for any one 
to have stirred up strife between these men and their employers. And 
this presents a very simple though effective illustration of what is 
meant by the words 'prosperity for the employee, coupled with pros- 
perity for the employer' — the two principle objects of management. It 
is evident also that this result has been brought about by the applica- 
tion of the four fundamental principles of scientific management." 



APPENDIX 

THE ORGANIZATION OF WAR CONSTRUCTION 

FORCES 

Since the text of this book was written the preparation of 
the United States for the great World's War has necessi- 
tated the expenditure of miUions of dollars for the construc- 
tion of temporary buildings and terminals for handling war 
munitions. This work had to be done quickly, and with 
practically no preliminary preparation. 

Contractors were called upon to finish, in a few months, 
jobs involving expenditures from a few thousands of dol- 
lars to ten millions or more. The uniformly good results 
obtained, in spite of the necessity for unheard-of speed, can 
be attributed to the ability of the contractors to quickly 
outline and build up organizations of almost any size. In 
many cases from ten to fifty thousand men, with large 
numbers of machines, were gotten together within thirty 
days, were properly organized and put to work. The 
results were not the most economical; the necessity for 
great speed made it hard^ to effect savings that would, 
under ordinary conditions, have been made. In some 
cases, government plans were indefinite and frequent 
changes had to be made. But the necessary speed was 
obtained — and the cost could not be considered excessive 
under the conditions. 

Many lessons have been learned from the experience of 
1917, but space will not permit of their being recorded at 
present. Perhaps the greatest lesson we can learn is by 
studying the working up of field organizations both in the 
United States and in Canada. 

The chart shown in Fig. A is that used by the contract- 
ors who built all the cantonments in Canada. This work 

180 



APPENDIX 



181 




182 



APPENDIX 



was not so extensive as that done in the United States, but 
reports state that the results were commendable. 

The general manager of the contractors was made an 
officer of the Canadian Army and the work was co-ordi- 



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I Department Foreman 



\Temp'rLiSeryiceY^R.Rds.&Excav\\ Constructh WManufacturing\\ Mechanical j 
Fig. B. — Camp Upton organization chart. 



nated by having all matters pass through the office of a 
representative of the Militia and Defense Board of Canada. 



j AsstioSupt 



SuPERfNTENDENT \ 



\ Transporfh\ \ Labor I 



\Piv.SuptDiYE.F\ 
I 6en.Foreman\ 



^arp.Foreman\ \Lab. Foreman \ 



]PivSuptLaunDiv.D\ 
I Gen. ForemanX 



\Lab. Foreman \ \Carp.Foremar\ 



\Div.SuptHo5p.&.Div.A \ 

\ Pen. Foreman] \Lab. Foreman 



\ Office Mqr~\ 
I Accountant \ 



\Assistant5upt\ 



I Sewers \ 



\WaterFore'n \ 



\ Elect r'l Sup T 



Foremanx 



Div.Sui _, 
Ass'n'tm'rsefc 



\6en.Foreman\ 



\ Accounting | | Stenq. Files. 



Chief Clerk~\ \ Cashier 



Wat'l.&Traffic 



Purchasing \ \ Traffic Stock 



\ Engineering 



I Ch.Draftsm'n\ \Fld. Engineer 



\9enFofn DivBdj 
\Carp. Foreman] 



\Plb.&Htg.Supt. 



I Plumbing \ \ Heating' 



\Carp.Foreman\ \Lab Foreman \ \Lab. Foreman \ \CarpForemah\ 

Fig. C. — Camp Travis organization chart. 



The sloping lines, starting at the center, are to show the 
relative responsibility of the various offices and the sequence 
of the work. To the right is shown the office force and the 
method of handling the finances; on the left is shown the 



APPENDIX 



183 



actual organization for construction, listing the heads of 
departments and showing the classes of work to be done by 
each group. There is, however, nothing to show how the 




various departments interlock, nor into what units the 
various forces are to be divided. 

The chart shown in Fig. B illustrates the various depart- 
ments with only one or two executive officers. It shows 



184 APPENDIX 

only the general method of handling the work, and does not 
give the various classes of construction to be done. 

The chart shown in Fig. C indicates the labor divisions, 
both for the office and field. This chart is an improvement 
over that shown in Fig. B, but if the two were worked up 
together both would be more comprehensive. 

In Fig. D, showing the organization used at Camp Grant, 
this has been done. In this chart the organization of the 
labor forces is shown, the various materials to be purchased 
are indicated and the method of handling them is mapped 
out. Even the organization of a sub-contractor is illus- 
trated. The various classes of construction and the depart- 
ments for handling each are also charted. This is an 
improvement over the other charts. 

The chart shown in Fig. E is one the author devised for a 
large organization on a cantonment job. It centralizes 
the authority under a general manager, and provides for 
the many different classes of construction that may be 
involved. It also divides the work into various units and 
shows the labor organizations for each unit. 

If there is not much work of any one class, one superin- 
tendent can be placed in charge of two or more kinds of 
jobs and the general foreman under him will likewise take 
charge of several classes of work. 

If the job is not large enough to warrant this organiza- 
tion, the general foreman can be eliminated. The foremen 
would then report to the superintendents. If the organi- 
zation indicated is too expensive for the size of the job, the 
superintendents can be eliminated. The foremen will then 
report direct to the general superintendent. This makes a- 
very flexible arrangement. 

Because of the flexibility of an organization such as that 
indicated the work can be divided into units. The breaks 
in the fines show how the organization can be expanded to 
cover a dozen units if necessary. On the other hand, the 
entire job could be done as a single unit by simply con- 
tracting the organization. 

The financial, engineering, and other departments can 



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APPENDIX 



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APPENDIX 187 

be handled in the same manner. The various departments 
are linked together by lines, showing how one department 
must work with another, and also how one may serve 
several different departments, as in the case of the material 
and transportation departments. The chart also indicates 
how the purchasing department links the material depart- 
ment to the bookkeeping, auditing and financial end of the 
organization. 

Fig. F is the chart for a sub-contractor on a cantonment 
job. This, too, was devised by the author. The job 
involves the expenditure of about S50,000 of work and was 
carried on day and night. This chart was modeled after 
that shown in Fig. E, but is not so comprehensive. 

In Fig. G, the organization chart of the new cantonment 
division of the quartermaster general is shown. This 
division of the War Department has built all the camps, is 
now building additional structures and new terminals, as 
well as maintaining and repairing the work already com- 
pleted. This chart shows how operating and service 
branches can be co-ordinated. 

It is the earnest hope of the author that, with the use of 
these charts, in connection with other diagrams given in this 
volume, the reader will be able to outline and organize his 
construction forces so that the work will be carried on with 
the least possible friction and waste of effort. 



INDEX 

A 

Analysis of costs 54 

B 

Bituminous road materials, shovels for 74, 75 

Boards, wall 154 

Bonuses 24, 114, 175 

Book-keeping 117, 129 

Bucyrus Co 63 

Buying machinery 157 

C 

Camp organization charts 180 

Canadian cantonments, charts, of construction 180 

Capital 27 

Cards, fihng systems 156 

for instructions and records Ill 

records of employees 171 

of tools and machines 149 

Cement, shovel for 73 

Charts of works . 22, 101 

organization 180 

progress 99 

Coal, shovel for 73 

Concrete construction susceptible to system 140 

mixers 41, 42 

Construction work, application of scientific management to 3, 6, 94 

charts and plans 22, 101, 180 

choosing machinery 37 

cost records 52 

designing rigging and structures 23, 104 

details of plans 18 

hand methods 39 

lack of planning, example 10 

methods of applying scientific management 6 

organization charts 180 

overhead charges 44 

planning in advance 6, 9, 94 

189 



190 INDEX 

Construction work, plant knowledge 49 

layouts 102 

progress charts 99 

quantities of work planning 23, 105 

susceptibility to systematization 140 

systematizing 131 

time and motion studies 57, 60 

schedule 22, 97 

war construction 180 

Cooper, Peter 101 

Cost keeping 117 

complete system 128 

forms 118 

grading report • 126 

material reports and stock books 123 

records in detail 124 

signing reports 127 

Costs and prices 117 

estimates of 99 

overhead expenses 44 

records 52 



D 



Definition of scientific management 1 

Departments in contracting , 138 

Designing, planning work ahead 22, 101 

plant layouts 22, 102 

rigging and structures 23, 104 

Distribution of work ...,,, 23, 107 



E 



Earth, shovel for 72 

Edison, Thomas ' 101 

Efficiency engineering, definition 1 

expert as financial help 26 

will 33 

Employees, instructions for 24, 110 

study of 170 

Engineering, planning work ahead 22, 100 

Estimates of cost 22, 99 

Excavation, machinery for 40 

shovel work 64 

systematizing 141 

Excessive plant 41 

Expenses, list of overhead 45 



INDEX 191 

F 

Filing systems for cards 156 

Finances and efficiency 26 

Forms for keeping costs 118 

Franklin, B. A 33, 36 

G 

Gangs, number, size 23, 109 

Gantt, H. L 48, 114 

Grading report 126 

H 

Hand methods 39 

Handling materials 41 

. routing 23, lOZ 

I 

Institutional management 173 

Instructions for workmen 24, 110 

L 

Laborers, instructions for 24, 112 

Latrobe 101 

Limits of shoveling 85 

Loading, time and motion studies 70 

M 

Machinery, plant knowledge 49 

pmrchasing 156 

records of 143 

special machines 54 

Machines, card records 150 

marking plates 150 

selecting 37 

wall boards for records 154 

Makeshift machinery 39 

Manure, shovels for 75 

Material lists 23, 105 

reports 123 

Materials, handling 23 

purchasing 156 

Mechanics, instructions for 24, 110 

Modern management, see Scientific management. 



192 INDEX 

Motion studies, application of 57, 60 

applied to shovel work 64 

Motions of shoveling 79 

MulhoUand 101 

O 

Organization of war construction forces 180 

Overhead charges 44 

P 

Planning work 6, 9, 94 

charts and plans 22, 10] 

designing and engineering , 22, 100 

plant layouts 22, 102 

details •. . . . 18 

distribution of work 23, 107 

estimates of cost 22, 99 

example of lack of planning 10 

general methods 21, 94 

plans 22, 96 

instructions for workmen 24, 110 

material lists 23, 105 

number and size of gangs 23, 109 

plant selection 22, 97 

quantities of work 23, 105 

rewarding workmen 24, 114 

rigging and structures 23, 104 

routing work 23, 105 

time schedule 22, 97 

Plans of construction work 22, 101 

studying 96 

Plant, amount of 37 

excessive 41 

knowledge 49 

lack of 38 

layouts, designing 22, 102 

selection 22, 97 

Plates for marking machines 150 

Prices and costs 117 

Progress charts 99 

Purchasing materials and machinery 156 

R 

Record of employees 171 

Report forms 119 

Reports, signing 127 



INDEX 193 

Rewarding workmen 24, 114 

Rigging, designing 23, 104 

Road materials, shovels for 74, 75 

Roebling 101 

Routing work 23, 105 

Rules for contractors 131 

S 

Sand, shovel for 69, 73 

Scientific management, application to construction 3, 6, 94 

books and experts 4 

choosing type and amount of plant 37 

cost records 52 

definition 1 

effect on workmen 170 

efficiency will 33 

example of lack of planning 10 

finances, and efficiency 26 

methods of applying to construction work 6, 94 

motion and time studies 57 

old vs. new methods 9 

planning methods 94 

the highest test 19 

principles 17 

Selecting machines 37 

SelUng and buying machinery ' 157 

Shoveling, height of 70 

limits of 85 

motion and time studies 64, 79 

pairing men 86 

Shovels, abuse of 93 

dimensions 90 

long-handled 66 

method of manufacture '. 87 

of selling 91 

shapes 68, 72 

size of 76 

Signing reports 127 

Snow, shovel for 74 

Special machines 54 

Stock books 123 

Stone, shovel for 72 

Structures, designing 23, 104 

Study of workmen 170 

Systematizing construction 131 

amount of work to be done 139 

books of rules 131 

charts of organization 132 

13 



194 INDEX 

Systematizing construction susceptible to system 140 

departments, in contracting 138 

outline of system on paper 135 

purchasing materials and machinery 156 

records of tools and machinery 143 



Tasks and bonuses 114 

Taylor, F. W 76, 176, 178 

Team shoveling 86 

Time schedule 22, 97 

studies, application of 57, 60 

Tools, card records 149 

records of 143 

Trautwine 101 

Turf, shovels for 75 

U 

Unloading cars, methods 83 

W 

Wages 24, 115 

Wall boards for records of machines 154 

War construction organization 180 

Wellington, A. M 100 

Whinery 101 

Work, quantities 23, 105 

routing 23, 105 

Workmen, effect of modern management on 170 

instructions for 24, 110 



